Connecticut Seal

General Assembly

 

Substitute Bill No. 932

    January Session, 2009

*_____SB00932FIN___040209____*

AN ACT CONCERNING VARIOUS REVENUE MEASURES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 12-211a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to income years commencing on or after January 1, 2009):

Notwithstanding any provision of the general statutes, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter (1) for any income year commencing prior to January 1, 2009, shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits, (2) for any income year commencing on or after January 1, 2009, but prior to January 1, 2010, shall not exceed sixty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits, and (3) for any income year commencing on or after January 1, 2010, shall not exceed fifty per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits.

Sec. 2. Subdivision (2) of subsection (a) of section 12-214 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to income years commencing on or after January 1, 2009):

(2) The following companies shall be exempt from the tax imposed under this chapter: (A) Insurance companies incorporated or organized under the laws of any other state or foreign government and for income years commencing on or after January 1, 1999, domestic insurance companies; (B) companies exempt by the federal corporation net income tax law; [, and any company which qualifies as a domestic international sales corporation (DISC), as defined in Section 992 of the Internal Revenue Code and as to which a valid election under subsection (b) of said Section 992 to be treated as a DISC is effective, but excluding companies, other than any company which so qualifies as, and so elects to be treated as, a DISC, which elect not to be subject to such tax under any provision of said Internal Revenue Code other than said subsection (b) of Section 992;] (C) companies subject to gross earnings taxes under chapter 210; (D) companies all of whose properties in this state are operated by companies subject to gross earnings taxes under chapter 210; (E) cooperative housing corporations, as defined for federal income tax purposes; (F) any organization or association of two or more persons established and operated for the exclusive purpose of promoting the success or defeat of any candidate for public office or of any political party or question or constitutional amendment to be voted upon at any state or national election or for any other political purpose; (G) any company which is not owned or controlled, directly or indirectly, by any other company, the gross annual revenues of which in the most recently completed year did not exceed one hundred million dollars and which engaged in the research, design, manufacture, sale or installation of alternative energy systems or motor vehicles powered in whole or in part by electricity, natural gas or solar energy including their parts and components, provided at least seventy-five per cent of the gross annual revenues of such company are derived from such research, design, manufacture, sale or installation; (H) any company which engages in the research, design, manufacture or sale in Connecticut of aero-derived gas turbine systems in advanced industrial applications, which applications are developed after October 1, 1992, which are limited to simple-cycle systems, humid air, steam or water injection, recuperation or intercooling technologies, including their parts and components, to the extent that such company's net income is directly attributable to such purposes; (I) any non-United States corporation, which shall be any foreign corporation, as defined in Section 7701(a)(5) of the Internal Revenue Code, whose sole activity in this state during the income year consists of the trading in stocks, securities or commodities for such corporation's own account, as defined in Section 864(b)(2)(A)(ii) of said Internal Revenue Code; and (J) for income years commencing on or after January 1, 2001, S corporations.

Sec. 3. Subsection (b) of section 12-214 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to income years commencing on or after January 1, 2009):

(b) (1) With respect to income years commencing on or after January 1, 1989, and prior to January 1, 1992, any company subject to the tax imposed in accordance with subsection (a) of this section shall pay, for each such income year, an additional tax in an amount equal to twenty per cent of the tax calculated under said subsection (a) for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The additional amount of tax determined under this subsection for any income year shall constitute a part of the tax imposed by the provisions of said subsection (a) and shall become due and be paid, collected and enforced as provided in this chapter.

(2) With respect to income years commencing on or after January 1, 1992, and prior to January 1, 1993, any company subject to the tax imposed in accordance with subsection (a) of this section shall pay, for each such income year, an additional tax in an amount equal to ten per cent of the tax calculated under said subsection (a) for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The additional amount of tax determined under this subsection for any income year shall constitute a part of the tax imposed by the provisions of said subsection (a) and shall become due and be paid, collected and enforced as provided in this chapter.

(3) With respect to income years commencing on or after January 1, 2003, and prior to January 1, 2004, any company subject to the tax imposed in accordance with subsection (a) of this section shall pay, for each such income year, an additional tax in an amount equal to twenty per cent of the tax calculated under said subsection (a) for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The additional amount of tax determined under this subsection for any income year shall constitute a part of the tax imposed by the provisions of said subsection (a) and shall become due and be paid, collected and enforced as provided in this chapter.

(4) With respect to income years commencing on or after January 1, 2004, and prior to January 1, 2005, any company subject to the tax imposed in accordance with subsection (a) of this section shall pay, for each such income year, an additional tax in an amount equal to twenty-five per cent of the tax calculated under said subsection (a) for such income year, without reduction of the tax so calculated by the amount of any credit against such tax, except that any company that pays the minimum tax of two hundred fifty dollars under section 12-219 or 12-223c for such income year shall not be subject to the additional tax imposed by this subdivision. The additional amount of tax determined under this subdivision for any income year shall constitute a part of the tax imposed by the provisions of said subsection (a) and shall become due and be paid, collected and enforced as provided in this chapter.

(5) With respect to income years commencing on or after January 1, 2006, and prior to January 1, 2007, any company subject to the tax imposed in accordance with subsection (a) of this section shall pay, except when the tax so calculated is equal to two hundred fifty dollars, for each such income year, an additional tax in an amount equal to twenty per cent of the tax calculated under said subsection (a) for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The additional amount of tax determined under this subsection for any income year shall constitute a part of the tax imposed by the provisions of said subsection (a) and shall become due and be paid, collected and enforced as provided in this chapter.

(6) With respect to income years commencing on or after January 1, 2009, and prior to January 1, 2012, any company subject to the tax imposed in accordance with subsection (a) of this section shall pay, for each such income year, except when the tax so calculated is equal to two hundred fifty dollars, an additional tax in an amount equal to thirty per cent of the tax calculated under said subsection (a) for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The additional amount of tax determined under this subsection for any income year shall constitute a part of the tax imposed by the provisions of said subsection (a) and shall become due and be paid, collected and enforced as provided in this chapter.

Sec. 4. Subdivision (1) of subsection (a) of section 12-217 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to income years commencing on or after January 1, 2009):

(a) (1) In arriving at net income as defined in section 12-213, whether or not the taxpayer is taxable under the federal corporation net income tax, there shall be deducted from gross income, (A) all items deductible under the Internal Revenue Code effective and in force on the last day of the income year except (i) any taxes imposed under the provisions of this chapter which are paid or accrued in the income year and in the income year commencing January 1, 1989, and thereafter, any taxes in any state of the United States or any political subdivision of such state, or the District of Columbia, imposed on or measured by the income or profits of a corporation which are paid or accrued in the income year, [and] (ii) deductions for depreciation, which shall be allowed as provided in subsection (b) of this section, and (iii) deductions for domestic production, as provided in Section 199 of the Internal Revenue Code, and (B) additionally, in the case of a regulated investment company, the sum of (i) the exempt-interest dividends, as defined in the Internal Revenue Code, and (ii) expenses, bond premium, and interest related to tax-exempt income that are disallowed as deductions under the Internal Revenue Code, and (C) in the case of a taxpayer maintaining an international banking facility as defined in the laws of the United States or the regulations of the Board of Governors of the Federal Reserve System, as either may be amended from time to time, the gross income attributable to the international banking facility, provided, no expense or loss attributable to the international banking facility shall be a deduction under any provision of this section, and (D) additionally, in the case of all taxpayers, all dividends as defined in the Internal Revenue Code effective and in force on the last day of the income year not otherwise deducted from gross income, [including dividends received from a DISC or former DISC as defined in Section 992 of the Internal Revenue Code and dividends deemed to have been distributed by a DISC or former DISC as provided in Section 995 of said Internal Revenue Code,] other than thirty per cent of dividends received from a domestic corporation in which the taxpayer owns less than twenty per cent of the total voting power and value of the stock of such corporation, and (E) additionally, in the case of all taxpayers, the value of any capital gain realized from the sale of any land, or interest in land, to the state, any political subdivision of the state, or to any nonprofit land conservation organization where such land is to be permanently preserved as protected open space or to a water company, as defined in section 25-32a, where such land is to be permanently preserved as protected open space or as Class I or Class II water company land.

Sec. 5. Section 12-217zz of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to income years commencing on or after January 1, 2009):

Notwithstanding any other provision of law, the amount of tax credit or credits otherwise allowable against the tax imposed under this chapter (1) for any income year commencing prior to January 1, 2009, shall not exceed seventy per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits, (2) for any income year commencing on or after January 1, 2009, but prior to January 1, 2010, shall not exceed sixty-five per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits, and (3) for any income year commencing on or after January 1, 2010, shall not exceed fifty per cent of the amount of tax due from such taxpayer under this chapter with respect to such income year of the taxpayer prior to the application of such credit or credits.

Sec. 6. Subsection (c) of section 12-218 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to income years commencing on or after January 1, 2009):

(c) Except as otherwise provided in subsection (k) or (l) of this section, the net income of the taxpayer when derived from the manufacture, sale or use of tangible personal or real property, shall be apportioned within and without the state by means of an apportionment fraction, to be computed as the sum of the property factor, the payroll factor and twice the receipts factor, divided by four. (1) The first of these fractions, the property factor, shall represent that part of the average monthly net book value of the total tangible property held and owned by the taxpayer during the income year which is held within the state, without deduction on account of any encumbrance thereon, and the value of tangible property rented to the taxpayer computed by multiplying the gross rents payable during the income year or period by eight. For the purpose of this section, gross rents shall be the actual sum of money or other consideration payable, directly or indirectly, by the taxpayer or for its benefit for the use or possession of the property, excluding royalties, but including interest, taxes, insurance, repairs or any other amount required to be paid by the terms of a lease or other arrangement and a proportionate part of the cost of any improvement to the real property made by or on behalf of the taxpayer which reverts to the owner or lessor upon termination of a lease or other arrangement, based on the unexpired term of the lease commencing with the date the improvement is completed, provided, where a building is erected on leased land by or on behalf of the taxpayer, the value of the land is determined by multiplying the gross rent by eight, and the value of the building is determined in the same manner as if owned by the taxpayer. (2) The second fraction, the payroll factor, shall represent the part of the total wages, salaries and other compensation to employees paid by the taxpayer during the income year which was paid in this state, excluding any such wages, salaries or other compensation attributable to the production of gross income of an international banking facility as defined in section 12-217. Compensation is paid in this state if (A) the individual's service is performed entirely within the state; or (B) the individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the state; or (C) some of the service is performed in the state and (i) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state, or (ii) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state. (3) The third fraction, the receipts factor, shall represent the part of the taxpayer's gross receipts from sales or other sources during the income year, computed according to the method of accounting used in the computation of its entire net income, which is assignable to the state, and excluding any gross receipts attributable to an international banking facility as defined in section 12-217, but including receipts from sales of tangible property if the property is delivered or shipped to a purchaser within this state, [other than a company which qualifies as a Domestic International Sales Corporation (DISC) as defined in Section 992 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, and as to which a valid election under Subsection (b) of said Section 992 to be treated as a DISC is effective, regardless of the f.o.b. point or other conditions of the sale,] receipts from services performed within the state, rentals and royalties from properties situated within the state, royalties from the use of patents or copyrights within the state, interest managed or controlled within the state, net gains from the sale or other disposition of intangible assets managed or controlled within the state, net gains from the sale or other disposition of tangible assets situated within the state and all other receipts earned within the state.

Sec. 7. Subsection (b) of section 12-219 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to income years commencing on or after January 1, 2009):

(b) (1) With respect to income years commencing on or after January 1, 1989, and prior to January 1, 1992, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for each such income year, except when the tax so calculated is equal to two hundred fifty dollars, be increased by adding thereto an amount equal to twenty per cent of the additional tax so calculated for such income year, without reduction of the additional tax so calculated by the amount of any credit against such tax. The increased amount of tax payable by any company under this section, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

(2) With respect to income years commencing on or after January 1, 1992, and prior to January 1, 1993, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for each such income year, except when the tax so calculated is equal to two hundred fifty dollars, be increased by adding thereto an amount equal to ten per cent of the additional tax so calculated for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The increased amount of tax payable by any company under this section, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

(3) With respect to income years commencing on or after January 1, 2003, and prior to January 1, 2004, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for each such income year, be increased by adding thereto an amount equal to twenty per cent of the additional tax so calculated for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The increased amount of tax payable by any company under this section, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

(4) With respect to income years commencing on or after January 1, 2004, and prior to January 1, 2005, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for each such income year, be increased by adding thereto an amount equal to twenty-five per cent of the additional tax so calculated for such income year, without reduction of the tax so calculated by the amount of any credit against such tax, except that any company that pays the minimum tax of two hundred fifty dollars under this section or section 12-223c for such income year shall not be subject to such additional tax. The increased amount of tax payable by any company under this subdivision, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

(5) With respect to income years commencing on or after January 1, 2006, and prior to January 1, 2007, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for each such income year, except when the tax so calculated is equal to two hundred fifty dollars, be increased by adding thereto an amount equal to twenty per cent of the additional tax so calculated for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The increased amount of tax payable by any company under this section, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

(6) With respect to income years commencing on or after January 1, 2009, and prior to January 1, 2012, the additional tax imposed on any company and calculated in accordance with subsection (a) of this section shall, for each such income year, except when the tax so calculated is equal to two hundred fifty dollars, be increased by adding thereto an amount equal to thirty per cent of the additional tax so calculated for such income year, without reduction of the tax so calculated by the amount of any credit against such tax. The increased amount of tax payable by any company under this section, as determined in accordance with this subsection, shall become due and be paid, collected and enforced as provided in this chapter.

Sec. 8. Section 12-296 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2010, and applicable to sales occurring on or after January 1, 2010):

A tax is imposed on all cigarettes held in this state by any person for sale, said tax to be at the rate of one hundred twenty-five mills for each cigarette and the payment thereof shall be for the account of the purchaser or consumer of such cigarettes and shall be evidenced by the affixing of stamps to the packages containing the cigarettes as provided in this chapter.

Sec. 9. Section 12-316 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2010, and applicable to sales occurring on or after January 1, 2010):

A tax is hereby imposed at the rate of one hundred twenty-five mills for each cigarette upon the storage or use within this state of any unstamped cigarettes in the possession of any person other than a licensed distributor or dealer, or a carrier for transit from without this state to a licensed distributor or dealer within this state. Any person, including distributors, dealers, carriers, warehousemen and consumers, last having possession of unstamped cigarettes in this state shall be liable for the tax on such cigarettes if such cigarettes are unaccounted for in transit, storage or otherwise, and in such event a presumption shall exist for the purpose of taxation that such cigarettes were used and consumed in Connecticut.

Sec. 10. (Effective January 1, 2010) (a) An excise tax is hereby imposed upon each distributor and each dealer, as each are defined in section 12-285 of the general statutes and licensed pursuant to chapter 214 of the general statutes, in the amount of twenty-five mills per cigarette, as defined in said section 12-285, in such distributor's or such dealer's inventory as of the close of business on December 31, 2009, or, if the business closes after eleven fifty-nine o'clock p.m. on such date, at eleven fifty-nine o'clock p.m. on such date.

(b) Each such licensed distributor or dealer shall, not later than March 15, 2010, file with the Commissioner of Revenue Services, on forms prescribed by said commissioner, a report that shows the number of cigarettes in inventory as of the close of business on December 31, 2009, or, if the business closes after eleven fifty-nine o'clock p.m. on such date, at eleven fifty-nine o'clock p.m. on such date, upon which inventory the tax under subsection (a) of this section shall be imposed. The tax shall be due and payable on the due date of such report. If any distributor or dealer required to file a report pursuant to this section fails to file such report on or before March 15, 2010, the commissioner shall make an estimate of the number of cigarettes in such distributor's or dealer's inventory as of the close of business on December 31, 2009, based upon any information that is in the commissioner's possession or that may come into the commissioner's possession. The provisions of chapter 214 of the general statutes pertaining to failure to file returns, examination of returns by the commissioner, the issuance of deficiency assessments or assessments where no return has been filed, the collection of tax, the imposition of penalties and the accrual of interest shall apply to the distributors and dealers required to pay the tax imposed under this section. Failure of any distributor or dealer to file such report when due shall be sufficient reason to revoke such distributor's or dealer's license under the provisions of said chapter 214 and to revoke any other state license or permit held by such distributor or dealer.

Sec. 11. (NEW) (Effective July 1, 2009, and applicable to estates of decedents who die on or after January 1, 2009) With respect to estates of decedents who die on or after January 1, 2009, and on or before December 31, 2011, any estate subject to the tax imposed in accordance with section 12-391 of the general statutes shall pay an additional tax in an amount equal to thirty per cent of the tax calculated under said section 12-391 for such estate. The additional amount of tax determined under this subsection shall constitute a part of the tax imposed by the provisions of said section 12-391 and shall become due and be paid, collected and enforced as provided in chapter 217 of the general statutes.

Sec. 12. Section 12-407 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010, and applicable to sales occurring on and after July 1, 2010):

(a) Whenever used in this chapter:

(1) "Person" means and includes any individual, firm, copartnership, joint venture, association, association of persons however formed, social club, fraternal organization, corporation, limited liability company, foreign municipal electric utility as defined in section 12-59, estate, trust, fiduciary, receiver, trustee, syndicate, the United States, this state or any political subdivision thereof or any group or combination acting as a unit, and any other individual or officer acting under the authority of any court in this state.

(2) "Sale" and "selling" mean and include:

(A) Any transfer of title, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration;

(B) Any withdrawal, except a withdrawal pursuant to a transaction in foreign or interstate commerce, of tangible personal property from the place where it is located for delivery to a point in this state for the purpose of the transfer of title, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of the property for a consideration;

(C) The producing, fabricating, processing, printing or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing or imprinting, including, but not limited to, sign construction, photofinishing, duplicating and photocopying;

(D) The furnishing and distributing of tangible personal property for a consideration by social clubs and fraternal organizations to their members or others;

(E) The furnishing, preparing, or serving for a consideration of food, meals or drinks;

(F) A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price;

(G) A transfer for a consideration of the title of tangible personal property which has been produced, fabricated or printed to the special order of the customer, or of any publication, including, but not limited to, sign construction, photofinishing, duplicating and photocopying;

(H) A transfer for a consideration of the occupancy of any room or rooms in a hotel or lodging house for a period of thirty consecutive calendar days or less;

(I) The rendering of certain services, as defined in subdivision [(37)] (34) of this subsection, for a consideration, exclusive of such services rendered by an employee for the employer;

(J) The leasing or rental of tangible personal property of any kind whatsoever, including, but not limited to, motor vehicles, linen or towels, machinery or apparatus, office equipment and data processing equipment; [, provided for purposes of this subdivision and the application of sales and use tax to contracts of lease or rental of tangible personal property, the leasing or rental of any motion picture film by the owner or operator of a motion picture theater for purposes of display at such theater shall not constitute a sale within the meaning of this subsection;]

(K) The rendering of telecommunications service, as defined in subdivision (26) of this subsection, for a consideration on or after January 1, 1990, exclusive of any such service rendered by an employee for the employer of such employee, subject to the provisions related to telecommunications service in accordance with section 12-407a;

(L) (i) The rendering of community antenna television service, as defined in subdivision (27) of this subsection, for a consideration on or after January 1, 1990, exclusive of any such service rendered by an employee for the employer of such employee. For purposes of this chapter, "community antenna television service" includes service provided by a holder of a certificate of cable franchise authority pursuant to section 16-331p, and service provided by a community antenna television company issued a certificate of video franchise authority pursuant to section 16-331e for any service area in which it was not certified to provide community antenna television service pursuant to section 16-331 on or before October 1, 2007;

(ii) The rendering of certified competitive video service, as defined in subdivision [(38)] (35) of this subsection, for consideration on or after October 1, 2007, exclusive of any such service rendered by an employee for the employer of such employee;

(M) The transfer for consideration of space or the right to use any space for the purpose of storage or mooring of any noncommercial vessel, exclusive of dry or wet storage or mooring of such vessel during the period commencing on the first day of November in any year to and including the thirtieth day of April of the next succeeding year;

(N) The sale for consideration of naming rights to any place of amusement, entertainment or recreation within the meaning of subdivision (3) of section 12-540;

(O) The transfer for consideration of a prepaid telephone calling service, as defined in subdivision [(34)] (31) of this subsection, and the recharge of a prepaid telephone calling service, provided, if the sale or recharge of a prepaid telephone calling service does not take place at the retailer's place of business and an item is shipped by the retailer to the customer, the sale or recharge shall be deemed to take place at the customer's shipping address, but, if such sale or recharge does not take place at the retailer's place of business and no item is shipped by the retailer to the customer, the sale or recharge shall be deemed to take place at the customer's billing address or the location associated with the customer's mobile telephone number; and

(P) The furnishing by any person, for a consideration, of space for storage of tangible personal property when such person is engaged in the business of furnishing such space, but "sale" and "selling" do not mean or include the furnishing of space which is used by a person for residential purposes. As used in this subparagraph, "space for storage" means secure areas, such as rooms, units, compartments or containers, whether accessible from outside or from within a building, that are designated for the use of a customer, where the customer can store and retrieve property, including self-storage units, mini-storage units and areas by any other name to which the customer has either unlimited free access or free access within reasonable business hours or upon reasonable notice to the service provider to add or remove property, but does not mean the rental of an entire building, such as a warehouse. For purposes of this subparagraph, furnishing space for storage shall not include general warehousing and storage, where the warehouse typically handles, stores and retrieves a customer's property using the warehouse's staff and equipment and does not allow the customer free access to the storage space and shall not include accepting specific items of property for storage, such as clothing at a dry cleaning establishment or golf bags at a golf club.

(3) (A) "Retail sale" or "sale at retail" means and includes a sale for any purpose other than resale in the regular course of business of tangible personal property or a transfer for a consideration of the occupancy of any room or rooms in a hotel or lodging house for a period of thirty consecutive calendar days or less, or the rendering of any service described in subdivision (2) of this subsection. The delivery in this state of tangible personal property by an owner or former owner thereof or by a factor, if the delivery is to a consumer pursuant to a retail sale made by a retailer not engaged in business in this state, is a retail sale in this state by the person making the delivery. Such person shall include the retail selling price of the property in such person's gross receipts.

(B) "Retail sale" or "sale at retail" does not include any sale of any tangible personal property, where, no later than one hundred twenty days after the original sale, the original purchaser sells or becomes contractually obligated to sell such property to a retailer who is contractually obligated to lease such property back to such original purchaser in a lease that is taxable under this chapter or the sale of such property by the original purchaser to the retailer who is contractually obligated to lease such property back to such original purchaser in a lease that is taxable under this chapter. If the original purchaser has paid sales or use tax on the original sale of such property to the original purchaser, such original purchaser may (i) claim a refund of such tax under the provisions of section 12-425, upon presentation of proof satisfactory to the commissioner that the mutual contractual obligations described in this subparagraph were undertaken no later than one hundred twenty days after the original sale and that such tax was paid to the original retailer on the original sale and was remitted to the commissioner by such original retailer or by such original purchaser, or (ii) issue at the time of such original sale or no later than one hundred twenty days thereafter a certificate, in the form prescribed by the commissioner, to the original retailer certifying that the mutual contractual obligations described in this subparagraph have been undertaken. If such certificate is issued to the original retailer at the time of the original sale, no tax on the original sale shall be collected by the original retailer from the original purchaser. If the certificate is issued after the time of the original sale but no later than one hundred twenty days thereafter, the original retailer shall refund to the original purchaser the tax collected on the original sale and, if the original retailer has previously remitted the tax to the commissioner, the original retailer may either treat the amount so refunded as a credit against the tax due on the return next filed under this chapter, or claim a refund under section 12-425. If such certificate is issued no later than one hundred twenty days after the time of the original sale but the tangible personal property originally purchased is not, in fact, subsequently leased by the original purchaser, such original purchaser shall be liable for and be required to pay the tax due on the original sale.

(4) "Storage" includes any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property purchased from a retailer.

(5) "Use" includes the exercise of any right or power over tangible personal property incident to the ownership of that property, except that it does not include the sale of that property in the regular course of business.

(6) "Storage" and "use" do not include (A) keeping, retaining or exercising any right or power over tangible personal property shipped or brought into this state for the purpose of subsequently transporting it outside the state for use thereafter solely outside the state, or for the purpose of being processed, fabricated or manufactured into, attached to or incorporated into, other tangible personal property to be transported outside the state and thereafter used solely outside the state, or (B) keeping, retaining or exercising any right or power over tangible personal property acquired by the customer of a commercial printer while such property is located at the premises of the commercial printer in this state pursuant to a contract with such printer for printing and distribution of printed material if the commercial printer could have acquired such property without application of tax under this chapter.

(7) "Purchase" and "purchasing" means and includes: (A) Any transfer, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property or of the occupancy of any room or rooms in a hotel or lodging house for a period of thirty consecutive calendar days or less for a consideration; (B) a transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price; (C) a transfer for a consideration of tangible personal property which has been produced, fabricated or printed to the special order of the customer, or of any publication; (D) when performed outside this state or when the customer gives a resale certificate pursuant to section 12-410, the producing, fabricating, processing, printing or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing or imprinting; (E) the acceptance or receipt of any service described in any of the subparagraphs of subdivision (2) of this subsection; (F) any leasing or rental of tangible personal property. Wherever in this chapter reference is made to the purchase or purchasing of tangible personal property, it shall be construed to include purchases as described in this subsection.

(8) (A) "Sales price" means the total amount for which tangible personal property is sold by a retailer, the total amount of rent for which occupancy of a room is transferred by an operator, the total amount for which any service described in subdivision (2) of this subsection is rendered by a retailer or the total amount of payment or periodic payments for which tangible personal property is leased by a retailer, valued in money, whether paid in money or otherwise, which amount is due and owing to the retailer or operator and, subject to the provisions of subdivision (1) of section 12-408, whether or not actually received by the retailer or operator, without any deduction on account of any of the following: (i) The cost of the property sold; (ii) the cost of materials used, labor or service cost, interest charged, losses or any other expenses; (iii) for any sale occurring on or after July 1, 1993, any charges by the retailer to the purchaser for shipping or delivery, notwithstanding whether such charges are separately stated in a written contract, or on a bill or invoice rendered to such purchaser or whether such shipping or delivery is provided by the retailer or a third party. The provisions of subparagraph (A) (iii) of this subdivision shall not apply to any item exempt from taxation pursuant to section 12-412, as amended by this act. Such total amount includes any services that are a part of the sale; except as otherwise provided in subparagraph (B)(v) or (B)(vi) of this subdivision, any amount for which credit is given to the purchaser by the retailer, and all compensation and all employment-related expenses, whether or not separately stated, paid to or on behalf of employees of a retailer of any service described in subdivision (2) of this subsection.

(B) "Sales price" does not include any of the following: (i) Cash discounts allowed and taken on sales; (ii) any portion of the amount charged for property returned by purchasers, which upon rescission of the contract of sale is refunded either in cash or credit, provided the property is returned within ninety days from the date of purchase; (iii) the amount of any tax, not including any manufacturers' or importers' excise tax, imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the purchaser; (iv) the amount charged for labor rendered in installing or applying the property sold, provided such charge is separately stated and exclusive of such charge for any service rendered within the purview of subparagraph (I) of subdivision [(37)] (34) of this subsection; (v) unless the provisions of subdivision (4) of section 12-430 [or of section 12-430a] are applicable, any amount for which credit is given to the purchaser by the retailer, provided such credit is given solely for property of the same kind accepted in part payment by the retailer and intended by the retailer to be resold; (vi) the full face value of any coupon used by a purchaser to reduce the price paid to a retailer for an item of tangible personal property, whether or not the retailer will be reimbursed for such coupon, in whole or in part, by the manufacturer of the item of tangible personal property or by a third party; (vii) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of employees of a retailer who has contracted to manage a service recipient's property or business premises and renders management services described in subparagraph (I) or (J) of subdivision [(37)] (34) of this subsection, provided, the employees perform such services solely for the service recipient at its property or business premises and "sales price" shall include the separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of any employee of the retailer who is an officer, director or owner of more than five per cent of the outstanding capital stock of the retailer. Determination whether an employee performs services solely for a service recipient at its property or business premises for purposes of this subdivision shall be made by reference to such employee's activities during the time period beginning on the later of the commencement of the management contract, the date of the employee's first employment by the retailer or the date which is six months immediately preceding the date of such determination; [(viii) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of (I) a leased employee, or (II) a worksite employee by a professional employer organization pursuant to a professional employer agreement. For purposes of this subparagraph, an employee shall be treated as a leased employee if the employee is provided to the client at the commencement of an agreement with an employee leasing organization under which at least seventy-five per cent of the employees provided to the client at the commencement of such initial agreement qualify as leased employees pursuant to Section 414(n) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, or the employee is added to the client's workforce by the employee leasing organization subsequent to the commencement of such initial agreement and qualifies as a leased employee pursuant to Section 414(n) of said Internal Revenue Code of 1986 without regard to subparagraph (B) of paragraph (2) thereof. A leased employee, or a worksite employee subject to a professional employer agreement, shall not include any employee who is hired by a temporary help service and assigned to support or supplement the workforce of a temporary help service's client; (ix)] and (viii) any amount received by a retailer from a purchaser as the battery deposit that is required to be paid under subsection (a) of section 22a-245h; the refund value of a beverage container that is required to be paid under subsection (a) of section 22a-244; or a deposit that is required by law to be paid by the purchaser to the retailer and that is required by law to be refunded to the purchaser by the retailer when the same or similar tangible personal property is delivered as required by law to the retailer by the purchaser, if such amount is separately stated on the bill or invoice rendered by the retailer to the purchaser. [; and (x) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to a media payroll services company, as defined in this subsection.]

(9) (A) "Gross receipts" means the total amount of the sales price from retail sales of tangible personal property by a retailer, the total amount of the rent from transfers of occupancy of rooms by an operator, the total amount of the sales price from retail sales of any service described in subdivision (2) of this subsection by a retailer of services, or the total amount of payment or periodic payments from leases or rentals of tangible personal property by a retailer, valued in money, whether received in money or otherwise, which amount is due and owing to the retailer or operator and, subject to the provisions of subdivision (1) of section 12-408, whether or not actually received by the retailer or operator, without any deduction on account of any of the following: (i) The cost of the property sold; however, in accordance with such regulations as the Commissioner of Revenue Services may prescribe, a deduction may be taken if the retailer has purchased property for some other purpose than resale, has reimbursed the retailer's vendor for tax which the vendor is required to pay to the state or has paid the use tax with respect to the property, and has resold the property prior to making any use of the property other than retention, demonstration or display while holding it for sale in the regular course of business. If such a deduction is taken by the retailer, no refund or credit will be allowed to the retailer's vendor with respect to the sale of the property; (ii) the cost of the materials used, labor or service cost, interest paid, losses or any other expense; (iii) for any sale occurring on or after July 1, 1993, except for any item exempt from taxation pursuant to section 12-412, as amended by this act, any charges by the retailer to the purchaser for shipping or delivery, notwithstanding whether such charges are separately stated in the written contract, or on a bill or invoice rendered to such purchaser or whether such shipping or delivery is provided by the retailer or a third party. The total amount of the sales price includes any services that are a part of the sale; all receipts, cash, credits and property of any kind; except as otherwise provided in subparagraph (B)(v) or (B)(vi) of this subdivision, any amount for which credit is allowed by the retailer to the purchaser; and all compensation and all employment-related expenses, whether or not separately stated, paid to or on behalf of employees of a retailer of any service described in subdivision (2) of this subsection.

(B) "Gross receipts" do not include any of the following: (i) Cash discounts allowed and taken on sales; (ii) any portion of the sales price of property returned by purchasers, which upon rescission of the contract of sale is refunded either in cash or credit, provided the property is returned within ninety days from the date of sale; (iii) the amount of any tax, not including any manufacturers' or importers' excise tax, imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the purchaser; (iv) the amount charged for labor rendered in installing or applying the property sold, provided such charge is separately stated and exclusive of such charge for any service rendered within the purview of subparagraph (I) of subdivision [(37)] (34) of this subsection; (v) unless the provisions of subdivision (4) of section 12-430 [or of section 12-430a] are applicable, any amount for which credit is given to the purchaser by the retailer, provided such credit is given solely for property of the same kind accepted in part payment by the retailer and intended by the retailer to be resold; (vi) the full face value of any coupon used by a purchaser to reduce the price paid to the retailer for an item of tangible personal property, whether or not the retailer will be reimbursed for such coupon, in whole or in part, by the manufacturer of the item of tangible personal property or by a third party; (vii) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of employees of a retailer who has contracted to manage a service recipient's property or business premises and renders management services described in subparagraph (I) or (J) of subdivision [(37)] (34) of this subsection, provided the employees perform such services solely for the service recipient at its property or business premises and "gross receipts" shall include the separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of any employee of the retailer who is an officer, director or owner of more than five per cent of the outstanding capital stock of the retailer. Determination whether an employee performs services solely for a service recipient at its property or business premises for purposes of this subdivision shall be made by reference to such employee's activities during the time period beginning on the later of the commencement of the management contract, the date of the employee's first employment by the retailer or the date which is six months immediately preceding the date of such determination; [(viii) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to or on behalf of (I) a leased employee, or (II) a worksite employee by a professional employer organization pursuant to a professional employer agreement. For purposes of this subparagraph, an employee shall be treated as a leased employee if the employee is provided to the client at the commencement of an agreement with an employee leasing organization under which at least seventy-five per cent of the employees provided to the client at the commencement of such initial agreement qualify as leased employees pursuant to Section 414(n) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, or the employee is added to the client's workforce by the employee leasing organization subsequent to the commencement of such initial agreement and qualifies as a leased employee pursuant to Section 414(n) of said Internal Revenue Code of 1986 without regard to subparagraph (B) of paragraph (2) thereof. A leased employee, or a worksite employee subject to a professional employer agreement, shall not include any employee who is hired by a temporary help service and assigned to support or supplement the workforce of a temporary help service's client; (ix)] and (viii) the amount received by a retailer from a purchaser as the battery deposit that is required to be paid under subsection (a) of section 22a-256h; the refund value of a beverage container that is required to be paid under subsection (a) of section 22a-244 or a deposit that is required by law to be paid by the purchaser to the retailer and that is required by law to be refunded to the purchaser by the retailer when the same or similar tangible personal property is delivered as required by law to the retailer by the purchaser, if such amount is separately stated on the bill or invoice rendered by the retailer to the purchaser. [; and (x) the amount charged for separately stated compensation, fringe benefits, workers' compensation and payroll taxes or assessments paid to a media payroll services company, as defined in this subsection.]

(10) "Business" includes any activity engaged in by any person or caused to be engaged in by any person with the object of gain, benefit or advantage, either direct or indirect.

(11) "Seller" includes every person engaged in the business of selling tangible personal property or rendering any service described in any of the subparagraphs of subdivision (2) of this subsection, the gross receipts from the retail sale of which are required to be included in the measure of the sales tax and every operator as defined in subdivision (18) of this subsection.

(12) "Retailer" includes: (A) Every person engaged in the business of making sales at retail or in the business of making retail sales at auction of tangible personal property owned by the person or others; (B) every person engaged in the business of making sales for storage, use or other consumption or in the business of making sales at auction of tangible personal property owned by the person or others for storage, use or other consumption; (C) every operator, as defined in subdivision (18) of this subsection; (D) every seller rendering any service described in subdivision (2) of this subsection; (E) every person under whom any salesman, representative, peddler or canvasser operates in this state, or from whom such salesman, representative, peddler or canvasser obtains the tangible personal property that is sold; (F) every person with whose assistance any seller is enabled to solicit orders within this state; (G) every person making retail sales from outside this state to a destination within this state and not maintaining a place of business in this state who engages in regular or systematic solicitation of sales of tangible personal property in this state (i) by the display of advertisements on billboards or other outdoor advertising in this state, (ii) by the distribution of catalogs, periodicals, advertising flyers or other advertising by means of print, radio or television media, or (iii) by mail, telegraphy, telephone, computer data base, cable, optic, microwave or other communication system, for the purpose of effecting retail sales of tangible personal property, provided such person has made one hundred or more retail sales from outside this state to destinations within this state during the twelve-month period ended on the September thirtieth immediately preceding the monthly or quarterly period with respect to which such person's liability for tax under this chapter is determined; (H) any person owned or controlled, either directly or indirectly, by a retailer engaged in business in this state which is the same as or similar to the line of business in which such person so owned or controlled is engaged; (I) any person owned or controlled, either directly or indirectly, by the same interests that own or control, either directly or indirectly, a retailer engaged in business in this state which is the same as or similar to the line of business in which such person so owned or controlled is engaged; (J) any assignee of a person engaged in the business of leasing tangible personal property to others, where leased property of such person which is subject to taxation under this chapter is situated within this state and such assignee has a security interest, as defined in subdivision (35) of subsection (b) of section 42a-1-201, in such property; and (K) every person making retail sales of items of tangible personal property from outside this state to a destination within this state and not maintaining a place of business in this state who repairs or services such items, under a warranty, in this state, either directly or indirectly through an agent, independent contractor or subsidiary.

(13) "Tangible personal property" means personal property which may be seen, weighed, measured, felt or touched or which is in any other manner perceptible to the senses including canned or prewritten computer software. Tangible personal property includes the distribution, generation or transmission of electricity.

(14) "In this state" or "in the state" means within the exterior limits of the state of Connecticut and includes all territory within these limits owned by or ceded to the United States of America.

(15) (A) "Engaged in business in the state" means and includes but shall not be limited to the following acts or methods of transacting business: (i) Selling in this state, or any activity in this state in connection with selling in this state, tangible personal property for use, storage or consumption within the state; (ii) engaging in the transfer for a consideration of the occupancy of any room or rooms in a hotel or lodging house for a period of thirty consecutive calendar days or less; (iii) rendering in this state any service described in any of the subparagraphs of subdivision (2) of this subsection; (iv) maintaining, occupying or using, permanently or temporarily, directly or indirectly, through a subsidiary or agent, by whatever name called, any office, place of distribution, sales or sample room or place, warehouse or storage point or other place of business or having any representative, agent, salesman, canvasser or solicitor operating in this state for the purpose of selling, delivering or taking orders; (v) notwithstanding the fact that retail sales are made from outside this state to a destination within this state and that a place of business is not maintained in this state, engaging in regular or systematic solicitation of sales of tangible personal property in this state by the display of advertisements on billboards or other outdoor advertising in this state, by the distribution of catalogs, periodicals, advertising flyers or other advertising by means of print, radio or television media, or by mail, telegraphy, telephone, computer data base, cable, optic, microwave or other communication system, for the purpose of effecting retail sales of tangible personal property, provided one hundred or more retail sales from outside this state to destinations within this state are made during the twelve-month period ended on the September thirtieth immediately preceding the monthly or quarterly period with respect to which liability for tax under this chapter is determined; (vi) being owned or controlled, either directly or indirectly, by a retailer engaged in business in this state which is the same as or similar to the line of business in which the retailer so owned or controlled is engaged; (vii) being owned or controlled, either directly or indirectly, by the same interests that own or control, either directly or indirectly, a retailer engaged in business in this state which is the same as or similar to the line of business in which the retailer so owned or controlled is engaged; (viii) being the assignee of a person engaged in the business of leasing tangible personal property to others, where leased property of such person is situated within this state and such assignee has a security interest, as defined in subdivision (35) of subsection (b) of section 42a-1-201, in such property; and (ix) notwithstanding the fact that retail sales of items of tangible personal property are made from outside this state to a destination within this state and that a place of business is not maintained in this state, repairing or servicing such items, under a warranty, in this state, either directly or indirectly through an agent, independent contractor or subsidiary.

(B) A retailer who has contracted with a commercial printer for printing and distribution of printed material shall not be deemed to be engaged in business in this state because of the ownership or leasing by the retailer of tangible or intangible personal property located at the premises of the commercial printer in this state, the sale by the retailer of property of any kind produced or processed at and shipped or distributed from the premises of the commercial printer in this state, the activities of the retailer's employees or agents at the premises of the commercial printer in this state, which activities relate to quality control, distribution or printing services performed by the printer, or the activities of any kind performed by the commercial printer in this state for or on behalf of the retailer.

(C) A retailer not otherwise a retailer engaged in business in the state who purchases fulfillment services carried on in this state by a person other than an affiliated person, or who owns tangible personal property located on the premises of an unaffiliated person performing fulfillment services for such retailer shall not be deemed to be engaged in business in the state. For purposes of this subparagraph, persons are affiliated persons with respect to each other where one of such persons has an ownership interest of more than five per cent, whether direct or indirect, in the other, or where an ownership interest of more than five per cent, whether direct or indirect, is held in each of such persons by another person or by a group of other persons who are affiliated persons with respect to each other. For purposes of this subparagraph, "fulfillment services" means services that are performed by a person on its premises on behalf of a purchaser of such services and that involve the receipt of orders from the purchaser of such services or an agent thereof, which orders are to be filled by the person from an inventory of products that are offered for sale by the purchaser of such services, and the shipment of such orders to customers of the purchaser of such services.

(D) A retailer not otherwise a retailer engaged in business in this state that participates in a trade show or shows at the convention center, as defined in subdivision (3) of section 32-600, shall not be deemed to be engaged in business in this state, regardless of whether the retailer has employees or other staff present at such trade shows, provided the retailer's activity at such trade shows is limited to displaying goods or promoting services, no sales are made, any orders received are sent outside this state for acceptance or rejection and are filled from outside this state, and provided further that such participation is not more than fourteen days, or part thereof, in the aggregate during the retailer's income year for federal income tax purposes.

(16) "Hotel" means any building regularly used and kept open as such for the feeding and lodging of guests where any person who conducts himself properly and who is able and ready to pay for such services is received if there are accommodations for such person and which derives the major portion of its operating receipts from the renting of rooms and the sale of food. "Hotel" shall include any apartment hotel wherein apartments are rented for fixed periods of time, furnished or unfurnished, while the keeper of such hotel supplies food to the occupants thereof, if required.

(17) "Lodging house" means any building or portion of a building, other than a hotel or apartment hotel, in which persons are lodged for hire with or without meals, including, but not limited to, any motel, motor court, motor inn, tourist court or similar accommodation; provided the terms "hotel", "apartment hotel" and "lodging house" shall not be construed to include: (A) Privately owned and operated convalescent homes, residential care homes, homes for the infirm, indigent or chronically ill; (B) religious or charitable homes for the aged, infirm, indigent or chronically ill; (C) privately owned and operated summer camps for children; (D) summer camps for children operated by religious or charitable organizations; (E) lodging accommodations at educational institutions; or (F) lodging accommodations at any facility operated by and in the name of any nonprofit charitable organization, provided the income from such lodging accommodations at such facility is not subject to federal income tax.

(18) "Operator" means any person operating a hotel or lodging house in the state, including, but not limited to, the owner or proprietor of such premises, lessee, sublessee, mortgagee in possession, licensee or any other person otherwise operating such hotel or lodging house.

(19) "Occupancy" means the use or possession, or the right to the use or possession, of any room or rooms in a hotel or lodging house or the right to the use or possession of the furnishings or the services and accommodations accompanying the use and possession of such room or rooms, for the first period of not exceeding thirty consecutive calendar days.

(20) "Room" means any room or rooms of any kind in any part or portion of a hotel or lodging house let out for use or possession for lodging purposes.

(21) "Rent" means the consideration received for occupancy valued in money, whether received in money or otherwise, including all receipts, cash, credits and property or services of any kind or nature, and also any amount for which credit is allowed by the operator to the occupant, without any deduction therefrom whatsoever.

(22) "Certificated air carrier" means a person issued a certificate or certificates by the Federal Aviation Administration pursuant to Title 14, Chapter I, Subchapter G, Part 121, 135, 139 or 141 of the Code of Federal Regulations or the Civil Aeronautics Board pursuant to Title 14, Chapter II, Subchapter A, Parts 201 to 208, inclusive, and 298 of the Code of Federal Regulations, as such regulations may hereafter be amended or reclassified.

(23) "Aircraft" means aircraft, as the term is defined in section 15-34.

(24) "Vessel" means vessel, as the term is defined in section 15-127.

(25) "Licensed marine dealer" means a marine dealer, as the term is defined in section 15-141, who has been issued a marine dealer's certificate by the Commissioner of Environmental Protection.

(26) (A) "Telecommunications service" means the electronic transmission, conveyance or routing of voice, image, data audio, video or any other information or signals to a point or between or among points. "Telecommunications service" includes such transmission, conveyance or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such service is referred to as a voice over Internet protocol service or is classified by the Federal Communications Commission as enhanced or value added. "Telecommunications service" does not include (i) value-added nonvoice data services, (ii) radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance or routing of such services by the programming service provider. Radio and television audio and video programming services shall include, but not be limited to, cable service as defined in 47 USC 522(6), audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20, and video programming service by certified competitive video service providers, (iii) any telecommunications service (I) rendered by a company in control of such service when rendered for private use within its organization, or (II) used, allocated or distributed by a company within its organization, including in such organization affiliates, as defined in section 33-840, for the purpose of conducting business transactions of the organization if such service is purchased or leased from a company rendering telecommunications service and such purchase or lease is subject to tax under this chapter, (iv) access or interconnection service purchased by a provider of telecommunications service from another provider of such service for purposes of rendering such service, provided the purchaser submits to the seller a certificate attesting to the applicability of this exclusion, upon receipt of which the seller is relieved of any tax liability for such sale so long as the certificate is taken in good faith by the seller, (v) data processing and information services that allow data to be generated, acquired, stored, processed or retrieved and delivered by an electronic transmission to a purchaser where such purchaser's primary purpose for the underlying transaction is the processed data or information, (vi) installation or maintenance of wiring equipment on a customer's premises, (vii) tangible personal property, (viii) advertising, including, but not limited to, directory advertising, (ix) billing and collection services provided to third parties, (x) Internet access service, (xi) ancillary services, and (xii) digital products delivered electronically, including, but not limited to, software, music, video, reading materials or ring tones.

(B) For purposes of the tax imposed under this chapter (i) gross receipts from the rendering of telecommunications service shall include any subscriber line charge or charges as required by the Federal Communications Commission and any charges for access service collected by any person rendering such service unless otherwise excluded from such gross receipts under this chapter, and such gross receipts from the rendering of telecommunications service shall also include any charges for vertical service, for the installation or maintenance of wiring equipment on a customer's premises, and for directory assistance service; (ii) gross receipts from the rendering of telecommunications service shall not include any local charge for calls from public or semipublic telephones; and (iii) gross receipts from the rendering of telecommunications service shall not include any charge for calls purchased using a prepaid telephone calling service, as defined in subdivision [(34)] (31) of this subsection.

(27) "Community antenna television service" means (A) the one-way transmission to subscribers of video programming or information by cable, fiber optics, satellite, microwave or any other means, and subscriber interaction, if any, which is required for the selection of such video programming or information, and (B) noncable communications service, as defined in section 16-1. [, unless such noncable communications service is purchased by a cable network as that term is used in subsection (l) of section 12-218.]

(28) "Hospital" means a hospital included within the definition of health care facilities or institutions under section 19a-630 and licensed as a short-term general hospital by the Department of Public Health but, does not include (A) any hospital which, on January 30, 1997, is within the class of hospitals licensed by the department as children's general hospitals, or (B) a short-term acute hospital operated exclusively by the state other than a short-term acute hospital operated by the state as a receiver pursuant to chapter 920.

(29) "Patient care services" means therapeutic and diagnostic medical services provided by the hospital to inpatients and outpatients including tangible personal property transferred in connection with such services.

(30) "Another state" or "other state" means any state of the United States or the District of Columbia excluding the state of Connecticut.

[(31) "Professional employer agreement" means a written contract between a professional employer organization and a service recipient whereby the professional employer organization agrees to provide at least seventy-five per cent of the employees at the service recipient's worksite, which contract provides that such worksite employees are intended to be permanent employees rather than temporary employees, and employer responsibilities for such worksite employees, including hiring, firing and disciplining, are allocated between the professional employer organization and the service recipient.

(32) "Professional employer organization" means any person that enters into a professional employer agreement with a service recipient whereby the professional employer organization agrees to provide at least seventy-five per cent of the employees at the service recipient's worksite.

(33) "Worksite employee" means an employee, the employer responsibilities for which, including hiring, firing and disciplining, are allocated, under a professional employer agreement, between a professional employer organization and a service recipient.]

[(34)] (31) "Prepaid telephone calling service" means the right to exclusively purchase telecommunications service, that must be paid for in advance and that enables the origination of calls using an access number or authorization code, or both, whether manually or electronically dialed, provided the remaining amount of units of service that have been prepaid shall be known on a continuous basis.

[(35)] (32) "Canned or prewritten software" means all software, other than custom software, that is held or existing for general or repeated sale, license or lease. Software initially developed as custom software for in-house use and subsequently sold, licensed or leased to unrelated third parties shall be considered canned or prewritten software.

[(36)] (33) "Custom software" means a computer program prepared to the special order of a single customer.

[(37)] (34) "Services" for purposes of subdivision (2) of this subsection, means:

(A) Computer and data processing services, including, but not limited to, time, programming, code writing, modification of existing programs, feasibility studies and installation and implementation of software programs and systems even where such services are rendered in connection with the development, creation or production of canned or custom software or the license of custom software, and exclusive of services rendered in connection with the creation, development hosting or maintenance of all or part of a web site which is part of the graphical, hypertext portion of the Internet, commonly referred to as the World Wide Web;

(B) Credit information and reporting services;

(C) Services by employment agencies and agencies providing personnel services;

(D) Private investigation, protection, patrol work, watchman and armored car services, exclusive of [(i) services of off-duty police officers and off-duty firefighters, and (ii)] coin and currency services provided to a financial services company by or through another financial services company. For purposes of this subparagraph, "financial services company" has the same meaning as provided under subparagraphs (A) to (H), inclusive, of subdivision (6) of subsection (a) of section 12-218b;

(E) Painting and lettering services;

(F) Photographic studio services;

(G) Telephone answering services;

(H) Stenographic services;

(I) Services to industrial, commercial or income-producing real property, including, but not limited to, such services as management, electrical, plumbing, painting and carpentry and excluding any such services rendered in the voluntary evaluation, prevention, treatment, containment or removal of hazardous waste, as defined in section 22a-115, or other contaminants of air, water or soil, provided income-producing property shall not include property used exclusively for residential purposes in which the owner resides and which contains no more than three dwelling units, or a housing facility for low and moderate income families and persons owned or operated by a nonprofit housing organization, as defined in subdivision (29) of section 12-412;

(J) Business analysis, management, management consulting and public relations services, excluding (i) any environmental consulting services, [(ii) any training services provided by an institution of higher education licensed or accredited by the Board of Governors of Higher Education pursuant to section 10a-34, and (iii)] and (ii) on and after January 1, 1994, any business analysis, management, management consulting and public relations services when such services are rendered in connection with an aircraft leased or owned by a certificated air carrier or in connection with an aircraft which has a maximum certificated take-off weight of six thousand pounds or more;

(K) Services providing "piped-in" music to business or professional establishments;

(L) Flight instruction and chartering services by a certificated air carrier on an aircraft, the use of which for such purposes, but for the provisions of subdivision (4) of section 12-410 and subdivision (12) of section 12-411, would be deemed a retail sale and a taxable storage or use, respectively, of such aircraft by such carrier;

(M) Motor vehicle repair services, including any type of repair, painting or replacement related to the body or any of the operating parts of a motor vehicle;

(N) Motor vehicle parking, including the provision of space, other than metered space, in a lot having thirty or more spaces; [, excluding (i) space in a seasonal parking lot provided by a person who is exempt from taxation under this chapter pursuant to subdivision (1), (5) or (8) of section 12-412, (ii) space in a parking lot owned or leased under the terms of a lease of not less than ten years' duration and operated by an employer for the exclusive use of its employees, (iii) valet parking provided at any airport, and (iv) space in municipally-operated railroad parking facilities in municipalities located within an area of the state designated as a severe nonattainment area for ozone under the federal Clean Air Act or space in a railroad parking facility in a municipality located within an area of the state designated as a severe nonattainment area for ozone under the federal Clean Air Act owned or operated by the state on or after April 1, 2000;]

(O) Radio or television repair services;

(P) Furniture reupholstering and repair services;

(Q) Repair services to any electrical or electronic device, including, but not limited to, equipment used for purposes of refrigeration or air-conditioning;

(R) Lobbying or consulting services for purposes of representing the interests of a client in relation to the functions of any governmental entity or instrumentality;

(S) Services of the agent of any person in relation to the sale of any item of tangible personal property for such person; [, exclusive of the services of a consignee selling works of art, as defined in subsection (b) of section 12-376c, or articles of clothing or footwear intended to be worn on or about the human body other than (i) any special clothing or footwear primarily designed for athletic activity or protective use and which is not normally worn except when used for the athletic activity or protective use for which it was designed, and (ii) jewelry, handbags, luggage, umbrellas, wallets, watches and similar items carried on or about the human body but not worn on the body in the manner characteristic of clothing intended for exemption under subdivision (47) of section 12-412, under consignment, exclusive of services provided by an auctioneer;]

(T) Locksmith services;

(U) Advertising or public relations services, including layout, art direction, graphic design, mechanical preparation or production supervision, not related to the development of media advertising or cooperative direct mail advertising;

(V) Landscaping and horticulture services;

(W) Window cleaning services;

(X) Maintenance services;

(Y) Janitorial services;

(Z) Exterminating services;

(AA) Swimming pool cleaning and maintenance services;

(BB) Miscellaneous personal services included in industry group 729 in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, or U.S. industry 532220, 812191, 812199 or 812990 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition; [, exclusive of (i) services rendered by massage therapists licensed pursuant to chapter 384a, and (ii) services rendered by an electrologist licensed pursuant to chapter 388;]

(CC) Any repair or maintenance service to any item of tangible personal property including any contract of warranty or service related to any such item;

(DD) Business analysis, management or managing consulting services rendered by a general partner, or an affiliate thereof, to a limited partnership, provided (i) the general partner, or an affiliate thereof, is compensated for the rendition of such services other than through a distributive share of partnership profits or an annual percentage of partnership capital or assets established in the limited partnership's offering statement, and (ii) the general partner, or an affiliate thereof, offers such services to others, including any other partnership. As used in this subparagraph "an affiliate of a general partner" means an entity which is directly or indirectly owned fifty per cent or more in common with a general partner;

(EE) Notwithstanding the provisions of section 12-412, as amended by this act, except subdivision (87) of said section 12-412, patient care services, as defined in subdivision (29) of this subsection by a hospital, except that "sale" and "selling" does not include such patient care services for which payment is received by the hospital during the period commencing July 1, 2001, and ending June 30, 2003;

(FF) Health and athletic club services, exclusive of (i) any such services provided without any additional charge which are included in any dues or initiation fees paid to any such club, which dues or fees are subject to tax under section 12-543, (ii) any such services provided by a municipality or an organization that is described in Section 501(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, and (iii) yoga instruction provided at a yoga studio;

(GG) Car washing services;

(HH) Tax preparation services; and

(II) Amusement and recreation services included in major group 79 in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, or sector 71 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition, excluding dance lessons and any such service provided (i) by a person who is exempt from taxation under this chapter pursuit to subdivision (1), (5) or (8) of section 12-412, as amended by this act, or in a facility owned or managed by a person who is exempt from taxation under this chapter pursuant to subdivision (1) of section 12-412, except when the service entitles the patron to participate in an athletic or sporting activity that is not organized exclusively for patrons under the age of nineteen, and (ii) without any additional charge, dues or initiation fees paid to any retailer, which charge, dues or fees are subject to the tax imposed under section 12-541 or 12-543.

[(38) "Media payroll services company" means a retailer whose principal business activity is the management and payment of compensation, fringe benefits, workers' compensation, payroll taxes or assessments to individuals providing services to an eligible production company pursuant to section 12-217jj.]

[(39)] (35) "Certified competitive video service" means video programming service provided through wireline facilities, a portion of which are located in the public right-of-way, without regard to delivery technology, including Internet protocol technology. "Certified competitive video service" does not include any video programming provided by a commercial mobile service provider, as defined in 47 USC 332(d); any video programming provided as part of community antenna television service; any video programming provided as part of, and via, a service that enables users to access content, information, electronic mail or other services over the Internet.

[(40)] (36) "Directory assistance" means an ancillary service of providing telephone number information or address information.

[(41)] (37) "Vertical service" means an ancillary service that is offered in connection with one or more telecommunications services, offering advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services.

(b) Wherever in this chapter reference is made to the sale of tangible personal property or services, it shall be construed to include sales described in subdivision (2) of subsection (a) of this section, except as may be specifically provided to the contrary.

Sec. 13. Section 12-407e of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009):

[From] (a) Except as otherwise provided in subsection (b) of this section, from the third Sunday in August until the Saturday next succeeding, inclusive, the provisions of this chapter shall not apply to sales of any article of clothing or footwear intended to be worn on or about the human body the cost of which article to the purchaser is less than three hundred dollars. For purposes of this section, clothing or footwear shall not include (1) any special clothing or footwear primarily designed for athletic activity or protective use and which is not normally worn except when used for the athletic activity or protective use for which it was designed, and (2) jewelry, handbags, luggage, umbrellas, wallets, watches and similar items carried on or about the human body but not worn on the body in the manner characteristic of clothing intended for exemption under this section.

(b) The provisions of subsection (a) of this section shall not apply to sales of articles described in said subsection (a) from the third Sunday in August until the Saturday next succeeding during the calendar years 2009 and 2010.

Sec. 14. Subdivision (5) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010, and applicable to sales occurring on and after July 1, 2010):

(5) [(A)] Sales of tangible personal property or services to [and by] nonprofit charitable hospitals in this state, nonprofit nursing homes, nonprofit rest homes and nonprofit residential care homes licensed by the state pursuant to chapter 368v for the exclusive purposes of such institutions except any such service transaction as described in subparagraph (EE) of subdivision [(37)] (34) of subsection (a) of section 12-407.

[(B) Sales of tangible personal property by any organization that is exempt from federal income tax under Section 501(a) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, and that the United States Treasury Department has expressly determined, by letter, to be an organization that is described in Section 501(c)(3) of said internal revenue code, which sales are made on the premises of a hospital.

(C) Sales of tangible personal property or services to an acute care, for-profit hospital, operating as an acute care, for-profit hospital as of May 12, 2004, for the purposes of such institution in connection with the constructing and equipping of any facility of such hospital for which a certificate of need was filed before, and is pending on, May 12, 2004.]

Sec. 15. Section 12-430 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010, and applicable to sales occurring on and after July 1, 2010):

(1) The commissioner, whenever he deems it necessary to insure compliance with this chapter, may require any person subject thereto to deposit with him such security as the commissioner determines. The amount of the security shall be fixed by the commissioner but shall not be greater than six times the person's estimated average liability for the period for which he files returns, determined in such manner as the commissioner deems proper. The amount of the security may be increased or decreased by the commissioner subject to the limitations herein provided. The commissioner may sell the security at public auction if it becomes necessary so to do in order to recover any tax or any amount required to be collected, or any interest or penalty due. Notice of the sale may be served upon the person who deposited the security personally or by mail. If by mail, service shall be made in the manner prescribed for service of a notice of a deficiency assessment and shall be addressed to the person at his address as it appears in the records of the commissioner's office. Security in the form of a bearer bond, issued by the United States or the state of Connecticut, which has a prevailing market price may, however, be sold by the commissioner at private sale at a price not lower than the prevailing market price thereof. Upon any sale any surplus above the amounts due shall be returned to the person who deposited the security.

(2) Repealed by P.A. 81-64, S. 22, 23.

(3) Each person before obtaining an original or transferral registration for a motor vehicle, vessel, snowmobile or aircraft in this state shall furnish evidence that any tax due thereon pursuant to the provisions of this chapter has been paid in accordance with regulations prescribed by the Commissioner of Revenue Services, and on forms approved by, in the case of a motor vehicle, vessel or snowmobile, the Commissioner of Revenue Services and the Commissioner of Motor Vehicles, and, in the case of an aircraft, the Commissioner of Revenue Services and the Commissioner of Transportation. The Commissioner of Motor Vehicles shall, upon the request of the Commissioner of Revenue Services, after hearing by the Commissioner of Revenue Services, suspend or revoke a motor vehicle, vessel or snowmobile registration of any person who fails to pay any tax due in connection with the sale, storage, use or other consumption of such motor vehicle, vessel or snowmobile pursuant to the provisions of this chapter. The Commissioner of Transportation shall, upon the request of the Commissioner of Revenue Services, after a hearing by the Commissioner of Revenue Services, suspend or revoke an aircraft registration of any person who fails to pay any tax due in connection with the sale, storage, use or other consumption of such aircraft pursuant to the provisions of this chapter.

(4) Where a trade-in of a motor vehicle is received by a motor vehicle dealer, upon the sale of another motor vehicle to a consumer, or where a trade-in of an aircraft, as defined in subdivision (5) of section 15-34, is received by an aircraft dealer, upon the sale of another aircraft to a consumer, or where a trade-in of a farm tractor, snowmobile or any vessel, as defined in section 15-127, is received by a retailer of farm tractors, snowmobiles or such vessels upon the sale of another farm tractor, snowmobile or such vessel to a consumer, the tax is only on the difference between the sale price of the motor vehicle, aircraft, snowmobile, farm tractor or such vessel purchased and the amount allowed on the motor vehicle, aircraft, snowmobile, farm tractor or such vessel traded in on such purchase. When any such motor vehicle, aircraft, snowmobile, farm tractor or such vessel traded in is subsequently sold to a consumer or user, the tax provided for in this chapter applies.

(5) If any service or article of tangible personal property has already been subjected to a sales or use tax by any other state or political subdivision thereof and payment made thereon in respect to its sale or use in an amount less than the tax imposed by this chapter, the provisions of this chapter shall apply, but at a rate measured by the difference, only, between the rate herein fixed and the rate by which the previous tax upon the sale or use was computed. If such tax imposed in such other state or political subdivision thereof is equivalent to or in excess of the rate imposed under this chapter at the time of such sale or use, then no tax shall be due on such article.

[(6) When a licensed motor vehicle dealer replaces a motor vehicle which has been registered to such dealer and the replaced motor vehicle is no longer in the possession of or used by such dealer, the tax imposed by this chapter shall be applicable only with respect to the difference between such dealer's cost for the new motor vehicle being registered, which motor vehicle is the replacement for said replaced motor vehicle, and the wholesale value of said replaced motor vehicle at the time of its replacement, determined in accordance with a standard reference book for such values acceptable to the Commissioner of Revenue Services.]

[(7)] (6) (A) As used in this section, (i) "nonresident contractor" means a contractor who does not maintain a regular place of business in this state; (ii) "regular place of business" means any bona fide office, factory, warehouse or other space in this state at which a contractor is doing business in its own name in a regular and systematic manner, and which place is continuously maintained, occupied, and used by the contractor in carrying on its business through its employees regularly in attendance to carry on the contractor's business in the contractor's own name, except that "regular place of business" does not include a place of business for a statutory agent for service of process, or a temporary office or location used by the contractor only for the duration of the contract, whether or not at the site of construction, or an office maintained, occupied and used by a person affiliated with the contractor; (iii) "contract price" means the total contract price, including deposits, amounts held as retainage, costs for any change orders, or charges for add-ons; and (iv) "person doing business with a nonresident contractor" does not include an owner or tenant of real property used exclusively for residential purposes and consisting of three or fewer dwelling units, in one of which the owner or tenant resides, provided each nonresident contractor doing business with such owner or tenant shall be required to comply with the bond requirements under subparagraph (F) of this subdivision.

(B) Any person doing business with a nonresident contractor and making payments of the contract price to such nonresident contractor shall deduct and withhold from such payments an amount of five per cent of such payments, unless such nonresident contractor has furnished a certificate of compliance as described in subparagraph (E) of this subdivision. The amounts so required to be deducted and withheld shall be paid over to the commissioner by the last day of the month following the calendar quarter following the calendar quarter in which the first payment to the nonresident contractor is made, and every calendar quarter thereafter. Each such payment to the commissioner shall be accompanied by a form prescribed by the commissioner. The amount required to be deducted and withheld from the nonresident contractor, when so deducted and withheld, shall be held to be a special fund in trust for the state. No nonresident contractor shall have any right of action against a person deducting and withholding under this subdivision with respect to any moneys deducted and withheld and paid over to the commissioner in compliance with or intended compliance with this subdivision.

(C) A nonresident contractor shall request, in writing, that the Commissioner of Revenue Services audit the records of such contractor for a project for which amounts were deducted and withheld from such contractor under subparagraph (B) of this subdivision. If such request is not made within three years after the date the final payment of such amounts was made to the commissioner, such contractor waives the right to request such audit and claim a refund of such amounts. The commissioner shall, after receipt of such request, conduct an audit and issue to the nonresident contractor a certificate of no tax due or a certificate of tax due from the nonresident contractor. Not later than ninety days after the issuance of a certificate of no tax due, the commissioner shall return to the nonresident contractor the amounts deducted and withheld from such contractor and paid over to the commissioner. Upon issuance of a certificate of taxes due, the commissioner may return to the nonresident contractor the amount by which the amounts deducted and withheld and paid over to the commissioner under subparagraph (B) of this subdivision exceed the amount of taxes set forth in the certificate, together with the interest and penalties then assessed.

(D) When a person doing business with the nonresident contractor pays over to the Commissioner of Revenue Services amounts deducted and withheld pursuant to subparagraph (B) of this subdivision, such person shall not be liable for any claim of the nonresident contractor for such amounts or for any claim of the commissioner for any taxes of the nonresident contractor arising from the activities of the nonresident contractor on the project for which the amounts were paid over. Such payment shall not relieve the person doing business with the nonresident contractor of such person's liability for use taxes due on purchases of services from such nonresident contractor.

(E) When a nonresident contractor enters into a contract with the state, said contractor shall provide the Labor Department with evidence demonstrating compliance with the provisions of chapters 567 and 568, the prevailing wage requirements of chapter 557 and any other provisions of the general statutes related to conditions of employment.

(F) Not later than one hundred twenty days after the commencement of the contract, or thirty days after the completion of the contract, whichever is earlier, a nonresident contractor may (i) furnish a guarantee bond in a sum equivalent to five per cent of the contract price, or (ii) deposit with the commissioner a cash bond in a sum equal to five per cent of the contract price, in lieu of the requirements contained in subparagraph (B) of this subdivision. The commissioner may accept such bond on such terms and conditions as the commissioner may require, and upon acceptance of such bond, shall issue a certificate of compliance to the contractor. The provisions of subparagraph (C) of this subdivision shall apply to such bond, upon completion of the contract, in the same manner as such provisions apply to amounts paid over under subparagraph (B) of this subdivision.

(G) Upon the furnishing of a certificate of compliance by the nonresident contractor to the person doing business with a nonresident contractor, such person shall not be liable for any claim of the commissioner for any taxes of the nonresident contractor arising from the activities of such contractor on the project for which the bond was provided. Such certificate of compliance shall not relieve the person doing business with the nonresident contractor of such person's liability for use taxes due on purchases of services from such nonresident contractor.

(H) If any person doing business with a nonresident contractor fails to deduct and withhold and pay over to the commissioner amounts under subparagraph (B) of this subdivision, or fails to obtain a certificate of compliance from the nonresident contractor pursuant to subparagraph (G) of this subdivision, such person shall be personally liable for payment of any taxes of the nonresident contractor arising from the activities of such contractor on the project for which such amounts or certificate were required.

Sec. 16. Subsection (a) of section 12-700 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to taxable years commencing on or after January 1, 2009):

(a) There is hereby imposed on the Connecticut taxable income of each resident of this state a tax:

(1) At the rate of four and one-half per cent of such Connecticut taxable income for taxable years commencing on or after January 1, 1992, and prior to January 1, 1996.

(2) For taxable years commencing on or after January 1, 1996, but prior to January 1, 1997, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T1

Connecticut Taxable Income

Rate of Tax

T2

    Not over $2,250

    3.0%

T3

    Over $2,250

    $67.50, plus 4.5% of the

T4

 

    excess over $2,250

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T5

Connecticut Taxable Income

Rate of Tax

T6

    Not over $3,500

    3.0%

T7

    Over $3,500

    $105.00, plus 4.5% of the

T8

 

    excess over $3,500

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or a person who files a return under the federal income tax as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T9

Connecticut Taxable Income

Rate of Tax

T10

    Not over $4,500

    3.0%

T11

    Over $4,500

    $135.00, plus 4.5% of the

T12

 

    excess over $4,500

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income.

(3) For taxable years commencing on or after January 1, 1997, but prior to January 1, 1998, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T13

Connecticut Taxable Income

Rate of Tax

T14

    Not over $6,250

    3.0%

T15

    Over $6,250

    $187.50, plus 4.5% of the

T16

 

    excess over $6,250

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T17

Connecticut Taxable Income

Rate of Tax

T18

    Not over $10,000

    3.0%

T19

    Over $10,000

    $300.00, plus 4.5% of the

T20

 

    excess over $10,000

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or any person who files a return under the federal income tax for such taxable year as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T21

Connecticut Taxable Income

Rate of Tax

T22

    Not over $12,500

    3.0%

T23

    Over $12,500

    $375.00, plus 4.5% of the

T24

 

    excess over $12,500

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income.

(4) For taxable years commencing on or after January 1, 1998, but prior to January 1, 1999, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T25

Connecticut Taxable Income

Rate of Tax

T26

    Not over $7,500

    3.0%

T27

    Over $7,500

    $225.00, plus 4.5% of the

T28

 

    excess over $7,500

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T29

Connecticut Taxable Income

Rate of Tax

T30

    Not over $12,000

    3.0%

T31

    Over $12,000

    $360.00, plus 4.5% of the

T32

 

    excess over $12,000

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or any person who files a return under the federal income tax for such taxable year as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T33

Connecticut Taxable Income

Rate of Tax

T34

    Not over $15,000

    3.0%

T35

    Over $15,000

    $450.00, plus 4.5% of the

T36

 

    excess over $15,000

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income.

(5) For taxable years commencing on or after January 1, 1999, but prior to January 1, 2003, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T37

Connecticut Taxable Income

Rate of Tax

T38

    Not over $10,000

    3.0%

T39

    Over $10,000

    $300.00, plus 4.5% of the

T40

 

    excess over $10,000

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T41

Connecticut Taxable Income

Rate of Tax

T42

    Not over $16,000

    3.0%

T43

    Over $16,000

    $480.00, plus 4.5% of the

T44

 

    excess over $16,000

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or any person who files a return under the federal income tax for such taxable year as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T45

Connecticut Taxable Income

Rate of Tax

T46

    Not over $20,000

    3.0%

T47

    Over $20,000

    $600.00, plus 4.5% of the

T48

 

    excess over $20,000

(D) For trusts or estates, the rate of tax shall be 4.5% of their Connecticut taxable income.

(6) For taxable years commencing on or after January 1, 2003, but prior to January 1, 2009, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual or as a married individual filing separately:

T49

Connecticut Taxable Income

Rate of Tax

T50

    Not over $10,000

    3.0%

T51

    Over $10,000

    $300.00, plus 5.0% of the

T52

 

    excess over $10,000

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T53

Connecticut Taxable Income

Rate of Tax

T54

    Not over $16,000

    3.0%

T55

    Over $16,000

    $480.00, plus 5.0% of the

T56

 

    excess over $16,000

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or any person who files a return under the federal income tax for such taxable year as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T57

Connecticut Taxable Income

Rate of Tax

T58

    Not over $20,000

    3.0%

T59

    Over $20,000

    $600.00, plus 5.0% of the

T60

 

    excess over $20,000

(D) For trusts or estates, the rate of tax shall be 5.0% of the Connecticut taxable income.

(7) For taxable years commencing on or after January 1, 2009, in accordance with the following schedule:

(A) For any person who files a return under the federal income tax for such taxable year as an unmarried individual:

T61

Connecticut Taxable Income

Rate of Tax

T62

    Not over $10,000

    3.0%

T63

    Over $10,000 but not

    $300.00, plus 5.0% of the

T64

    over $132,500

    excess over $10,000

T65

    Over $132,500 but not

    $6,425, plus 6.0% of the excess

T66

    over $265,000

    over $132,500

T67

    Over $265,000 but not

    $14,375, plus 7.0% of the excess

T68

    over $397,500

    over $265,500

T69

    Over $397,500 but not

    $23,650 plus 7.5% of the excess

T70

    over $530,000

    over $397,500

T71

    Over $530,000

    $33,588 plus 7.95% of the

T72

 

    excess over $530,000

(B) For any person who files a return under the federal income tax for such taxable year as a head of household, as defined in Section 2(b) of the Internal Revenue Code:

T73

Connecticut Taxable Income

Rate of Tax

T74

    Not over $16,000

    3.0%

T75

    Over $16,000 but not

    $480.00, plus 5.0% of the

T76

    over $200,000

    excess over $16,000

T77

    Over $200,000 but not

    $9,680, plus 6.0% of the excess

T78

    over $400,000

    over $200,000

T79

    Over $400,000 but not

    $21,680, plus 7.0% of the excess

T80

    over $600,000

    over $400,000

T81

    Over $600,000 but not

    $35,680, plus 7.5% of the excess

T82

    over $800,000

    Over $600,000

T83

    Over $800,000

    $50,680, plus 7.95% of the

T84

 

    excess over $800,000

(C) For any husband and wife who file a return under the federal income tax for such taxable year as married individuals filing jointly or any person who files a return under the federal income tax for such taxable year as a surviving spouse, as defined in Section 2(a) of the Internal Revenue Code:

T85

Connecticut Taxable Income

Rate of Tax

T86

    Not over $20,000

    3.0%

T87

    Over $20,000 but not

    $600.00, plus 5.0% of the

T88

    over $250,000

    excess over $20,000

T89

    Over $250,000 but not

    $12,100, plus 6.0% of the excess

T90

    over $500,000

    over $250,000

T91

    Over $500,000 but not

    $27,100, plus 7.0% of the excess

T92

over $750,000

    over $500,000

T93

    Over $750,000 but not

    $44,600, plus 7.5% of the excess

T94

over $1,000,000

    over $750,000

T95

    Over $1,000,000

    $63,350, plus 7.95% of the excess

T96

 

    over $1,000,000

(D) For any person who files a return under the federal income tax for such taxable year as a married individual filing separately:

T97

Connecticut Taxable Income

Rate of Tax

T98

    Not over $10,000

    3.0%

T99

    Over $10,000 but not

    $300.00, plus 5.0% of the

T100

    over $125,000

    excess over $10,000

T101

    Over $125,000 but not

    $6,050, plus 6.0% of the excess

T102

    over $250,000

    over $125,000

T103

    Over $250,000 but not

    $13,550, plus 7.0% of the excess

T104

    over $375,000

    over $250,000

T105

    Over $375,000 but not

    $22,300 plus 7.5% of the excess

T106

    over $500,000

    over $375,000

T107

    Over $500,000

    $31,675, plus 7.95% of the excess

T108

 

    over $500,000

(E) For trusts or estates, the rate of tax shall be 7.95% of the Connecticut taxable income.

[(7)] (8) The provisions of this subsection shall apply to resident trusts and estates and, wherever reference is made in this subsection to residents of this state, such reference shall be construed to include resident trusts and estates, provided any reference to a resident's Connecticut adjusted gross income derived from sources without this state or to a resident's Connecticut adjusted gross income shall be construed, in the case of a resident trust or estate, to mean the resident trust or estate's Connecticut taxable income derived from sources without this state and the resident trust or estate's Connecticut taxable income, respectively.

Sec. 17. Subparagraph (A) of subdivision (20) of section 12-701 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to taxable years commencing on or after January 1, 2009):

(A) There shall be added thereto (i) to the extent not properly includable in gross income for federal income tax purposes, any interest income from obligations issued by or on behalf of any state, political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity, exclusive of such income from obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut and exclusive of any such income with respect to which taxation by any state is prohibited by federal law, (ii) any exempt-interest dividends, as defined in Section 852(b)(5) of the Internal Revenue Code, exclusive of such exempt-interest dividends derived from obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut and exclusive of such exempt-interest dividends derived from obligations, the income with respect to which taxation by any state is prohibited by federal law, (iii) any interest or dividend income on obligations or securities of any authority, commission or instrumentality of the United States which federal law exempts from federal income tax but does not exempt from state income taxes, (iv) to the extent included in gross income for federal income tax purposes for the taxable year, the total taxable amount of a lump sum distribution for the taxable year deductible from such gross income in calculating federal adjusted gross income, (v) to the extent properly includable in determining the net gain or loss from the sale or other disposition of capital assets for federal income tax purposes, any loss from the sale or exchange of obligations issued by or on behalf of the state of Connecticut, any political subdivision thereof, or public instrumentality, state or local authority, district or similar public entity created under the laws of the state of Connecticut, in the income year such loss was recognized, (vi) to the extent deductible in determining federal adjusted gross income, any income taxes imposed by this state, (vii) to the extent deductible in determining federal adjusted gross income, any interest on indebtedness incurred or continued to purchase or carry obligations or securities the interest on which is exempt from tax under this chapter, (viii) expenses paid or incurred during the taxable year for the production or collection of income which is exempt from taxation under this chapter or the management, conservation or maintenance of property held for the production of such income, and the amortizable bond premium for the taxable year on any bond the interest on which is exempt from tax under this chapter to the extent that such expenses and premiums are deductible in determining federal adjusted gross income, [and] (ix) for property placed in service after September 10, 2001, but prior to September 11, 2004, in taxable years ending after September 10, 2001, any additional allowance for depreciation under subsection (k) of Section 168 of the Internal Revenue Code, as provided by Section 101 of the Job Creation and Worker Assistance Act of 2002, to the extent deductible in determining federal adjusted gross income, and (x) to the extent deductible in determining federal adjusted gross income, any amount excluded from gross income as a domestic production deduction pursuant to Section 199 of the Internal Revenue Code.

Sec. 18. Subsection (a) of section 12-702 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to taxable years commencing on or after January 1, 2009):

(a) (1) (A) Any person, other than a trust or estate, subject to the tax under this chapter for any taxable year who files under the federal income tax for such taxable year as a married individual filing separately or, for taxable years commencing prior to January 1, 2000, who files income tax for such taxable year as an unmarried individual shall be entitled to a personal exemption of twelve thousand dollars in determining Connecticut taxable income for purposes of this chapter.

(B) In the case of any such taxpayer whose Connecticut adjusted gross income for the taxable year exceeds twenty-four thousand dollars, the exemption amount shall be reduced by one thousand dollars for each one thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income for the taxable year exceeds said amount. In no event shall the reduction exceed one hundred per cent of the exemption.

(2) For taxable years commencing on or after January 1, 2000, any person, other than a trust or estate, subject to the tax under this chapter for any taxable year who files under the federal income tax for such taxable year as an unmarried individual shall be entitled to a personal exemption in determining Connecticut taxable income for purposes of this chapter as follows:

(A) For taxable years commencing on or after January 1, 2000, but prior to January 1, 2001, twelve thousand two hundred fifty dollars. In the case of any such taxpayer whose Connecticut adjusted gross income for the taxable year exceeds twenty-four thousand five hundred dollars, the exemption amount shall be reduced by one thousand dollars for each one thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income for the taxable year exceeds said amount. In no event shall the reduction exceed one hundred per cent of the exemption;

(B) For taxable years commencing on or after January 1, 2001, but prior to January 1, 2004, twelve thousand five hundred dollars. In the case of any such taxpayer whose Connecticut adjusted gross income for the taxable year exceeds twenty-five thousand dollars, the exemption amount shall be reduced by one thousand dollars for each one thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income for the taxable year exceeds said amount. In no event shall the reduction exceed one hundred per cent of the exemption;

(C) For taxable years commencing on or after January 1, 2004, but prior to January 1, 2007, twelve thousand six hundred twenty-five dollars. In the case of any such taxpayer whose Connecticut adjusted gross income for the taxable year exceeds twenty-five thousand two hundred fifty dollars, the exemption amount shall be reduced by one thousand dollars for each one thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income for the taxable year exceeds said amount. In no event shall the reduction exceed one hundred per cent of the exemption;

(D) For taxable years commencing on or after January 1, 2007, but prior to January 1, 2008, twelve thousand seven hundred fifty dollars. In the case of any such taxpayer whose Connecticut adjusted gross income for the taxable year exceeds twenty-five thousand five hundred dollars, the exemption amount shall be reduced by one thousand dollars for each one thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income for the taxable year exceeds said amount. In no event shall the reduction exceed one hundred per cent of the exemption;

(E) For taxable years commencing on or after January 1, 2008, but prior to January 1, [2009] 2012, thirteen thousand dollars. In the case of any such taxpayer whose Connecticut adjusted gross income for the taxable year exceeds twenty-six thousand dollars, the exemption amount shall be reduced by one thousand dollars for each one thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income for the taxable year exceeds said amount. In no event shall the reduction exceed one hundred per cent of the exemption;

(F) For taxable years commencing on or after January 1, [2009] 2012, but prior to January 1, [2010] 2013, thirteen thousand five hundred dollars. In the case of any such taxpayer whose Connecticut adjusted gross income for the taxable year exceeds twenty-seven thousand dollars, the exemption amount shall be reduced by one thousand dollars for each one thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income for the taxable year exceeds said amount. In no event shall the reduction exceed one hundred per cent of the exemption;

(G) For taxable years commencing on or after January 1, [2010] 2013, but prior to January 1, [2011] 2014, fourteen thousand dollars. In the case of any such taxpayer whose Connecticut adjusted gross income for the taxable year exceeds twenty-eight thousand dollars, the exemption amount shall be reduced by one thousand dollars for each one thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income for the taxable year exceeds said amount. In no event shall the reduction exceed one hundred per cent of the exemption;

(H) For taxable years commencing on or after January 1, [2011] 2014, but prior to January 1, [2012] 2015, fourteen thousand five hundred dollars. In the case of any such taxpayer whose Connecticut adjusted gross income for the taxable year exceeds twenty-nine thousand dollars, the exemption amount shall be reduced by one thousand dollars for each one thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income for the taxable year exceeds said amount. In no event shall the reduction exceed one hundred per cent of the exemption;

(I) For taxable years commencing on or after January 1, [2012] 2015, fifteen thousand dollars. In the case of any such taxpayer whose Connecticut adjusted gross income for the taxable year exceeds thirty thousand dollars, the exemption amount shall be reduced by one thousand dollars for each one thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income for the taxable year exceeds said amount. In no event shall the reduction exceed one hundred per cent of the exemption.

Sec. 19. Subsection (a) of section 12-703 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to taxable years commencing on or after January 1, 2009):

(a) (1) Any person, other than a trust or estate, subject to the tax under this chapter for any taxable year who files under the federal income tax for such taxable year as a married individual filing separately or for taxable years commencing prior to January 1, 2000, who files under the federal income tax for such taxable year as an unmarried individual shall be entitled to a credit in determining the amount of tax liability for purposes of this chapter in accordance with the following schedule:

T109

Connecticut

 

T110

Adjusted Gross Income

Amount of Credit

T111

    Over $12,000 but

 

T112

    not over $15,000

75%

T113

    Over $15,000 but

 

T114

    not over $15,500

70%

T115

    Over $15,500 but

 

T116

    not over $16,000

65%

T117

    Over $16,000 but

 

T118

    not over $16,500

60%

T119

    Over $16,500 but

 

T120

    not over $17,000

55%

T121

    Over $17,000 but

 

T122

    not over $17,500

50%

T123

    Over $17,500 but

 

T124

    not over $18,000

45%

T125

    Over $18,000 but

 

T126

    not over $18,500

40%

T127

    Over $18,500 but

 

T128

    not over $20,000

35%

T129

    Over $20,000 but

 

T130

    not over $20,500

30%

T131

    Over $20,500 but

 

T132

    not over $21,000

25%

T133

    Over $21,000 but

 

T134

    not over $21,500

20%

T135

    Over $21,500 but

 

T136

    not over $25,000

15%

T137

    Over $25,000 but

 

T138

    not over $25,500

14%

T139

    Over $25,500 but

 

T140

    not over $26,000

13%

T141

    Over $26,000 but

 

T142

    not over $26,500

12%

T143

    Over $26,500 but

 

T144

    not over $27,000

11%

T145

    Over $27,000 but

 

T146

    not over $48,000

10%

T147

    Over $48,000 but

 

T148

    not over $48,500

9%

T149

    Over $48,500 but

 

T150

    not over $49,000

8%

T151

    Over $49,000 but

 

T152

    not over $49,500

7%

T153

    Over $49,500 but

 

T154

    not over $50,000

6%

T155

    Over $50,000 but

 

T156

    not over $50,500

5%

T157

    Over $50,500 but

 

T158

    not over $51,000

4%

T159

    Over $51,000 but

 

T160

    not over $51,500

3%

T161

    Over $51,500 but

 

T162

    not over $52,000

2%

T163

    Over $52,000 but

 

T164

    not over $52,500

1%

(2) For taxable years commencing on or after January 1, 2000, any person, other than a trust or estate, subject to the tax under this chapter for any taxable year who files under the federal income tax for such taxable year as an unmarried individual shall be entitled to a credit in determining the amount of tax liability for purposes of this chapter in accordance with the following schedule:

(A) For taxable years commencing on or after January 1, 2000, but prior to January 1, 2001:

T165

Connecticut

 

T166

Adjusted Gross Income

Amount of Credit

T167

    Over $12,250 but

 

T168

    not over $15,300

75%

T169

    Over $15,300 but

 

T170

    not over $15,800

70%

T171

    Over $15,800 but

 

T172

    not over $16,300

65%

T173

    Over $16,300 but

 

T174

    not over $16,800

60%

T175

    Over $16,800 but

 

T176

    not over $17,300

55%

T177

    Over $17,300 but

 

T178

    not over $17,800

50%

T179

    Over $17,800 but

 

T180

    not over $18,300

45%

T181

    Over $18,300 but

 

T182

    not over $18,800

40%

T183

    Over $18,800 but

 

T184

    not over $20,400

35%

T185

    Over $20,400 but

 

T186

    not over $20,900

30%

T187

    Over $20,900 but

 

T188

    not over $21,400

25%

T189

    Over $21,400 but

 

T190

    not over $21,900

20%

T191

    Over $21,900 but

 

T192

    not over $25,500

15%

T193

    Over $25,500 but

 

T194

    not over $26,000

14%

T195

    Over $26,000 but

 

T196

    not over $26,500

13%

T197

    Over $26,500 but

 

T198

    not over $27,000

12%

T199

    Over $27,000 but

 

T200

    not over $27,500

11%

T201

    Over $27,500 but

 

T202

    not over $49,000

10%

T203

    Over $49,000 but

 

T204

    not over $49,500

9%

T205

    Over $49,500 but

 

T206

    not over $50,000

8%

T207

    Over $50,000 but

 

T208

    not over $50,500

7%

T209

    Over $50,500 but

 

T210

    not over $51,000

6%

T211

    Over $51,000 but

 

T212

    not over $51,500

5%

T213

    Over $51,500 but

 

T214

    not over $52,000

4%

T215

    Over $52,000 but

 

T216

    not over $52,500

3%

T217

    Over $52,500 but

 

T218

    not over $53,000

2%

T219

    Over $53,000 but

 

T220

    not over $53,500

1%

(B) For taxable years commencing on or after January 1, 2001, but prior to January 1, 2004:

T221

Connecticut

 

T222

Adjusted Gross Income

Amount of Credit

T223

    Over $12,500 but

 

T224

    not over $15,600

75%

T225

    Over $15,600 but

 

T226

    not over $16,100

70%

T227

    Over $16,100 but

 

T228

    not over $16,600

65%

T229

    Over $16,600 but

 

T230

    not over $17,100

60%

T231

    Over $17,100 but

 

T232

    not over $17,600

55%

T233

    Over $17,600 but

 

T234

    not over $18,100

50%

T235

    Over $18,100 but

 

T236

    not over $18,600

45%

T237

    Over $18,600 but

 

T238

    not over $19,100

40%

T239

    Over $19,100 but

 

T240

    not over $20,800

35%

T241

    Over $20,800 but

 

T242

    not over $21,300

30%

T243

    Over $21,300 but

 

T244

    not over $21,800

25%

T245

    Over $21,800 but

 

T246

    not over $22,300

20%

T247

    Over $22,300 but

 

T248

    not over $26,000

15%

T249

    Over $26,000 but

 

T250

    not over $26,500

14%

T251

    Over $26,500 but

 

T252

    not over $27,000

13%

T253

    Over $27,000 but

 

T254

    not over $27,500

12%

T255

    Over $27,500 but

 

T256

    not over $28,000

11%

T257

    Over $28,000 but

 

T258

    not over $50,000

10%

T259

    Over $50,000 but

 

T260

    not over $50,500

9%

T261

    Over $50,500 but

 

T262

    not over $51,000

8%

T263

    Over $51,000 but

 

T264

    not over $51,500

7%

T265

    Over $51,500 but

 

T266

    not over $52,000

6%

T267

    Over $52,000 but

 

T268

    not over $52,500

5%

T269

    Over $52,500 but

 

T270

    not over $53,000

4%

T271

    Over $53,000 but

 

T272

    not over $53,500

3%

T273

    Over $53,500 but

 

T274

    not over $54,000

2%

T275

    Over $54,000 but

 

T276

    not over $54,500

1%

(C) For taxable years commencing on or after January 1, 2004, but prior to January 1, 2007:

T277

Connecticut

 

T278

Adjusted Gross Income

Amount of Credit

T279

    Over $12,625 but

 

T280

    not over $15,750

75%

T281

    Over $15,750 but

 

T282

    not over $16,250

70%

T283

    Over $16,250 but

 

T284

    not over $16,750

65%

T285

    Over $16,750 but

 

T286

    not over $17,250

60%

T287

    Over $17,250 but

 

T288

    not over $17,750

55%

T289

    Over $17,750 but

 

T290

    not over $18,250

50%

T291

    Over $18,250 but

 

T292

    not over $18,750

45%

T293

    Over $18,750 but

 

T294

    not over $19,250

40%

T295

    Over $19,250 but

 

T296

    not over $21,050

35%

T297

    Over $21,050 but

 

T298

    not over $21,550

30%

T299

    Over $21,550 but

 

T300

    not over $22,050

25%

T301

    Over $22,050 but

 

T302

    not over $22,550

20%

T303

    Over $22,550 but

 

T304

    not over $26,300

15%

T305

    Over $26,300 but

 

T306

    not over $26,800

14%

T307

    Over $26,800 but

 

T308

    not over $27,300

13%

T309

    Over $27,300 but

 

T310

    not over $27,800

12%

T311

    Over $27,800 but

 

T312

    not over $28,300

11%

T313

    Over $28,300 but

 

T314

    not over $50,500

10%

T315

    Over $50,500 but

 

T316

    not over $51,000

9%

T317

    Over $51,000 but

 

T318

    not over $51,500

8%

T319

    Over $51,500 but

 

T320

    not over $52,000

7%

T321

    Over $52,000 but

 

T322

    not over $52,500

6%

T323

    Over $52,500 but

 

T324

    not over $53,000

5%

T325

    Over $53,000 but

 

T326

    not over $53,500

4%

T327

    Over $53,500 but

 

T328

    not over $54,000

3%

T329

    Over $54,000 but

 

T330

    not over $54,500

2%

T331

    Over $54,500 but

 

T332

    not over $55,000

1%

(D) For taxable years commencing on or after January 1, 2007, but prior to January 1, 2008:

T333

Connecticut

 

T334

Adjusted Gross Income

Amount of Credit

T335

    Over $12,750 but

 

T336

    not over $15,900

75%

T337

    Over $15,900 but

 

T338

    not over $16,400

70%

T339

    Over $16,400 but

 

T340

    not over $16,900

65%

T341

    Over $16,900 but

 

T342

    not over $17,400

60%

T343

    Over $17,400 but

 

T344

    not over $17,900

55%

T345

    Over $17,900 but

 

T346

    not over $18,400

50%

T347

    Over $18,400 but

 

T348

    not over $18,900

45%

T349

    Over $18,900 but

 

T350

    not over $19,400

40%

T351

    Over $19,400 but

 

T352

    not over $21,300

35%

T353

    Over $21,300 but

 

T354

    not over $21,800

30%

T355

    Over $21,800 but

 

T356

    not over $22,300

25%

T357

    Over $22,300 but

 

T358

    not over $22,800

20%

T359

    Over $22,800 but

 

T360

    not over $26,600

15%

T361

    Over $26,600 but

 

T362

    not over $27,100

14%

T363

    Over $27,100 but

 

T364

    not over $27,600

13%

T365

    Over $27,600 but

 

T366

    not over $28,100

12%

T367

    Over $28,100 but

 

T368

    not over $28,600

11%

T369

    Over $28,600 but

 

T370

    not over $51,000

10%

T371

    Over $51,000 but

 

T372

    not over $51,500

9%

T373

    Over $51,500 but

 

T374

    not over $52,000

8%

T375

    Over $52,000 but

 

T376

    not over $52,500

7%

T377

    Over $52,500 but

 

T378

    not over $53,000

6%

T379

    Over $53,000 but

 

T380

    not over $53,500

5%

T381

    Over $53,500 but

 

T382

    not over $54,000

4%

T383

    Over $54,000 but

 

T384

    not over $54,500

3%

T385

    Over $54,500 but

 

T386

    not over $55,000

2%

T387

    Over $55,000 but

 

T388

    not over $55,500

1%

(E) For taxable years commencing on or after January 1, 2008, but prior to January 1, [2009] 2012:

T389

Connecticut

 

T390

Adjusted Gross Income

Amount of Credit

T391

    Over $13,000 but

 

T392

    not over $16,300

75%

T393

    Over $16,300 but

 

T394

    not over $16,800

70%

T395

    Over $16,800 but

 

T396

    not over $17,300

65%

T397

    Over $17,300 but

 

T398

    not over $17,800

60%

T399

    Over $17,800 but

 

T400

    not over $18,300

55%

T401

    Over $18,300 but

 

T402

    not over $18,800

50%

T403

    Over $18,800 but

 

T404

    not over $19,300

45%

T405

    Over $19,300 but

 

T406

    not over $19,800

40%

T407

    Over $19,800 but

 

T408

    not over $21,700

35%

T409

    Over $21,700 but

 

T410

    not over $22,200

30%

T411

    Over $22,200 but

 

T412

    not over $22,700

25%

T413

    Over $22,700 but

 

T414

    not over $23,200

20%

T415

    Over $23,200 but

 

T416

    not over $27,100

15%

T417

    Over $27,100 but

 

T418

    not over $27,600

14%

T419

    Over $27,600 but

 

T420

    not over $28,100

13%

T421

    Over $28,100 but

 

T422

    not over $28,600

12%

T423

    Over $28,600 but

 

T424

    not over $29,100

11%

T425

    Over $29,100 but

 

T426

    not over $52,000

10%

T427

    Over $52,000 but

 

T428

    not over $52,500

9%

T429

    Over $52,500 but

 

T430

    not over $53,000

8%

T431

    Over $53,000 but

 

T432

    not over $53,500

7%

T433

    Over $53,500 but

 

T434

    not over $54,000

6%

T435

    Over $54,000 but

 

T436

    not over $54,500

5%

T437

    Over $54,500 but

 

T438

    not over $55,000

4%

T439

    Over $55,000 but

 

T440

    not over $55,500

3%

T441

    Over $55,500 but

 

T442

    not over $56,000

2%

T443

    Over $56,000 but

 

T444

    not over $56,500

1%

(F) For taxable years commencing on or after January 1, [2009] 2012, but prior to January 1, [2010] 2013:

T445

Connecticut

 

T446

Adjusted Gross Income

Amount Of Credit

T447

    Over $13,500 but

 

T448

    not over $16,900

75%

T449

    Over $16,900 but

 

T450

    not over $17,400

70%

T451

    Over $17,400 but

 

T452

    not over $17,900

65%

T453

    Over $17,900 but

 

T454

    not over $18,400

60%

T455

    Over $18,400 but

 

T456

    not over $18,900

55%

T457

    Over $18,900 but

 

T458

    not over $19,400

50%

T459

    Over $19,400 but

 

T460

    not over $19,900

45%

T461

    Over $19,900 but

 

T462

    not over $20,400

40%

T463

    Over $20,400 but

 

T464

    not over $22,500

35%

T465

    Over $22,500 but

 

T466

    not over $23,000

30%

T467

    Over $23,000 but

 

T468

    not over $23,500

25%

T469

    Over $23,500 but

 

T470

    not over $24,000

20%

T471

    Over $24,000 but

 

T472

    not over $28,100

15%

T473

    Over $28,100 but

 

T474

    not over $28,600

14%

T475

    Over $28,600 but

 

T476

    not over $29,100

13%

T477

    Over $29,100 but

 

T478

    not over $29,600

12%

T479

    Over $29,600 but

 

T480

    not over $30,100

11%

T481

    Over $30,100 but

 

T482

    not over $54,000

10%

T483

    Over $54,000 but

 

T484

    not over $54,500

9%

T485

    Over $54,500 but

 

T486

    not over $55,000

8%

T487

    Over $55,000 but

 

T488

    not over $55,500

7%

T489

    Over $55,500 but

 

T490

    not over $56,000

6%

T491

    Over $56,000 but

 

T492

    not over $56,500

5%

T493

    Over $56,500 but

 

T494

    not over $57,000

4%

T495

    Over $57,000 but

 

T496

    not over $57,500

3%

T497

    Over $57,500 but

 

T498

    not over $58,000

2%

T499

    Over $58,000 but

 

T500

    not over $58,500

1%

(G) For taxable years commencing on or after January 1, [2010] 2013, but prior to January 1, [2011] 2014:

T501

Connecticut

 

T502

Adjusted Gross Income

Amount of Credit

T503

    Over $14,000 but

 

T504

    not over $17,500

75%

T505

    Over $17,500 but

 

T506

    not over $18,000

70%

T507

    Over $18,000 but

 

T508

    not over $18,500

65%

T509

    Over $18,500 but

 

T510

    not over $19,000

60%

T511

    Over $19,000 but

 

T512

    not over $19,500

55%

T513

    Over $19,500 but

 

T514

    not over $20,000

50%

T515

    Over $20,000 but

 

T516

    not over $20,500

45%

T517

    Over $20,500 but

 

T518

    not over $21,000

40%

T519

    Over $21,000 but

 

T520

    not over $23,300

35%

T521

    Over $23,300 but

 

T522

    not over $23,800

30%

T523

    Over $23,800 but

 

T524

    not over $24,300

25%

T525

    Over $24,300 but

 

T526

    not over $24,800

20%

T527

    Over $24,800 but

 

T528

    not over $29,200

15%

T529

    Over $29,200 but

 

T530

    not over $29,700

14%

T531

    Over $29,700 but

 

T532

    not over $30,200

13%

T533

    Over $30,200 but

 

T534

    not over $30,700

12%

T535

    Over $30,700 but

 

T536

    not over $31,200

11%

T537

    Over $31,200 but

 

T538

    not over $56,000

10%

T539

    Over $56,000 but

 

T540

    not over $56,500

9%

T541

    Over $56,500 but

 

T542

    not over $57,000

8%

T543

    Over $57,000 but

 

T544

    not over $57,500

7%

T545

    Over $57,500 but

 

T546

    not over $58,000

6%

T547

    Over $58,000 but

 

T548

    not over $58,500

5%

T549

    Over $58,500 but

 

T550

    not over $59,000

4%

T551

    Over $59,000 but

 

T552

    not over $59,500

3%

T553

    Over $59,500 but

 

T554

    not over $60,000

2%

T555

    Over $60,000 but

 

T556

    not over $60,500

1%

(H) For taxable years commencing on or after January 1, [2011] 2014, but prior to January 1, [2012] 2015:

T557

Connecticut

 

T558

Adjusted Gross Income

Amount of Credit

T559

    Over $14,500 but

 

T560

    not over $18,100

75%

T561

    Over $18,100 but

 

T562

    not over $18,600

70%

T563

    Over $18,600 but

 

T564

    not over $19,100

65%

T565

    Over $19,100 but

 

T566

    not over $19,600

60%

T567

    Over $19,600 but

 

T568

    not over $20,100

55%

T569

    Over $20,100 but

 

T570

    not over $20,600

50%

T571

    Over $20,600 but

 

T572

    not over $21,100

45%

T573

    Over $21,100 but

 

T574

    not over $21,600

40%

T575

    Over $21,600 but

 

T576

    not over $24,200

35%

T577

    Over $24,200 but

 

T578

    not over $24,700

30%

T579

    Over $24,700 but

 

T580

    not over $25,200

25%

T581

    Over $25,200 but

 

T582

    not over $25,700

20%

T583

    Over $25,700 but

 

T584

    not over $30,200

15%

T585

    Over $30,200 but

 

T586

    not over $30,700

14%

T587

    Over $30,700 but

 

T588

    not over $31,200

13%

T589

    Over $31,200 but

 

T590

    not over $31,700

12%

T591

    Over $31,700 but

 

T592

    not over $32,200

11%

T593

    Over $32,200 but

 

T594

    not over $58,000

10%

T595

    Over $58,000 but

 

T596

    not over $58,500

9%

T597

    Over $58,500 but

 

T598

    not over $59,000

8%

T599

    Over $59,000 but

 

T600

    not over $59,500

7%

T601

    Over $59,500 but

 

T602

    not over $60,000

6%

T603

    Over $60,000 but

 

T604

    not over $60,500

5%

T605

    Over $60,500 but

 

T606

    not over $61,000

4%

T607

    Over $61,000 but

 

T608

    not over $61,500

3%

T609

    Over $61,500 but

 

T610

    not over $62,000

2%

T611

    Over $62,000 but

 

T612

    not over $62,500

1%

(I) For taxable years commencing on or after January 1, [2012] 2015:

T613

Connecticut

 

T614

Adjusted Gross Income

Amount of Credit

T615

    Over $15,000 but

 

T616

    not over $18,800

75%

T617

    Over $18,800 but

 

T618

    not over $19,300

70%

T619

    Over $19,300 but

 

T620

    not over $19,800

65%

T621

    Over $19,800 but

 

T622

    not over $20,300

60%

T623

    Over $20,300 but

 

T624

    not over $20,800

55%

T625

    Over $20,800 but

 

T626

    not over $21,300

50%

T627

    Over $21,300 but

 

T628

    not over $21,800

45%

T629

    Over $21,800 but

 

T630

    not over $22,300

40%

T631

    Over $22,300 but

 

T632

    not over $25,000

35%

T633

    Over $25,000 but

 

T634

    not over $25,500

30%

T635

    Over $25,500 but

 

T636

    not over $26,000

25%

T637

    Over $26,000 but

 

T638

    not over $26,500

20%

T639

    Over $26,500 but

 

T640

    not over $31,300

15%

T641

    Over $31,300 but

 

T642

    not over $31,800

14%

T643

    Over $31,800 but

 

T644

    not over $32,300

13%

T645

    Over $32,300 but

 

T646

    not over $32,800

12%

T647

    Over $32,800 but

 

T648

    not over $33,300

11%

T649

    Over $33,300 but

 

T650

    not over $60,000

10%

T651

    Over $60,000 but

 

T652

    not over $60,500

9%

T653

    Over $60,500 but

 

T654

    not over $61,000

8%

T655

    Over $61,000 but

 

T656

    not over $61,500

7%

T657

    Over $61,500 but

 

T658

    not over $62,000

6%

T659

    Over $62,000 but

 

T660

    not over $62,500

5%

T661

    Over $62,500 but

 

T662

    not over $63,000

4%

T663

    Over $63,000 but

 

T664

    not over $63,500

3%

T665

    Over $63,500 but

 

T666

    not over $64,000

2%

T667

    Over $64,000 but

 

T668

    not over $64,500

1%

Sec. 20. Subsection (c) of section 12-704c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2009, and applicable to taxable years commencing on or after January 1, 2009):

(c) (1) (A) For taxable years commencing prior to January 1, 2000, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-two thousand five hundred dollars, the amount of the credit that exceeds one hundred dollars shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(B) For taxable years commencing on or after January 1, 2000, but prior to January 1, 2001, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-three thousand five hundred dollars, the amount of the credit that exceeds one hundred dollars shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(C) For taxable years commencing on or after January 1, 2001, but prior to January 1, 2004, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-four thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(D) For taxable years commencing on or after January 1, 2004, but prior to January 1, 2007, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-five thousand dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(E) For taxable years commencing on or after January 1, 2007, but prior to January 1, 2008, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-five thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(F) For taxable years commencing on or after January 1, 2008, but prior to January 1, 2009, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds fifty-six thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(G) For taxable years commencing on or after January 1, 2009, but prior to January 1, 2010, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds [fifty-eight thousand five hundred] forty-two thousand three hundred seventy-five dollars, the amount of the credit shall be reduced by ten per cent for each [ten thousand] seven thousand five hundred dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(H) For taxable years commencing on or after January 1, 2010, [but prior to January 1, 2011,] in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds [sixty thousand five hundred] fourteen thousand one hundred twenty-five dollars, the amount of the credit shall be reduced by ten per cent for each [ten thousand] two thousand five hundred dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

[(I) For taxable years commencing on or after January 1, 2011, but prior to January 1, 2012, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds sixty-two thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(J) For taxable years commencing on or after January 1, 2012, in the case of any such taxpayer who files under the federal income tax for such taxable year as an unmarried individual whose Connecticut adjusted gross income exceeds sixty-four thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.]

(2) [In] (A) For taxable years commencing prior to January 1, 2009, in the case of any such taxpayer who files under the federal income tax for such taxable year as a married individual filing separately whose Connecticut adjusted gross income exceeds fifty thousand two hundred fifty dollars, the amount of the credit shall be reduced by ten per cent for each five thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(B) For taxable years commencing on or after January 1, 2009, but prior to January 1, 2010, in the case of any such taxpayer who files under the federal income tax for such taxable year as a married individual filing separately whose Connecticut adjusted gross income exceeds thirty-seven thousand six hundred eighty-eight dollars, the amount of the credit shall be reduced by ten per cent for each three thousand seven hundred fifty dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(C) For taxable years commencing on or after January 1, 2010, in the case of any such taxpayer who files under the federal income tax for such taxable year as a married individual filing separately whose Connecticut adjusted gross income exceeds twelve thousand five hundred sixty-three dollars, the amount of the credit shall be reduced by ten per cent for each one thousand two hundred fifty dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(3) [In] (A) For taxable years commencing prior to January 1, 2009, in the case of a taxpayer who files under the federal income tax for such taxable year as a head of household whose Connecticut adjusted gross income exceeds seventy-eight thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(B) For taxable years commencing on or after January 1, 2009, but prior to January 1, 2010, in the case of any such taxpayer who files under the federal income tax for such taxable year as a head of household whose Connecticut adjusted gross income exceeds fifty-eight thousand eight hundred seventy-five dollars, the amount of the credit shall be reduced by ten per cent for each seven thousand five hundred dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(C) For taxable years commencing on or after January 1, 2010, in the case of any such taxpayer who files under the federal income tax for such taxable year as a head of household whose Connecticut adjusted gross income exceeds nineteen thousand six hundred twenty-five dollars, the amount of the credit shall be reduced by ten per cent for each two thousand five hundred dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(4) [In] (A) For taxable years commencing prior to January 1, 2009, in the case of a taxpayer who files under federal income tax for such taxable year as married individuals filing jointly whose Connecticut adjusted gross income exceeds one hundred thousand five hundred dollars, the amount of the credit shall be reduced by ten per cent for each ten thousand dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(B) For taxable years commencing on or after January 1, 2009, but prior to January 1, 2010, in the case of any such taxpayer who files under the federal income tax for such taxable year as married individuals filing jointly whose Connecticut adjusted gross income exceeds seventy-five thousand three hundred seventy-five dollars, the amount of the credit shall be reduced by ten per cent for each seven thousand five hundred dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

(C) For taxable years commencing on or after January 1, 2010, in the case of any such taxpayer who files under the federal income tax for such taxable year as married individuals filing jointly whose Connecticut adjusted gross income exceeds twenty-five thousand one hundred twenty-five dollars, the amount of the credit shall be reduced by ten per cent for each two thousand five hundred dollars, or fraction thereof, by which the taxpayer's Connecticut adjusted gross income exceeds said amount.

Sec. 21. Subdivision (2) of subsection (d) of section 12-63a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(2) As used in subdivision (1) of this subsection, "first sale" means any sale or conveyance by an owner of any mobile manufactured home on or after October 1, 1986, except a sale or conveyance to (A) an owner's spouse; (B) an owner's brother or sister who actually resides in the mobile manufactured home unit being sold or conveyed; or (C) any other person if the owner makes such sale to such other person for the purpose of using the proceeds of such sale to purchase a substitute mobile manufactured home to be located on the leasehold site being occupied by such owner's existing mobile manufactured home. In the case of a sale as defined in subparagraph (C) of this subdivision, the owner's substitute mobile manufactured home subsequently located on the owner's leasehold site shall be assessed in the same manner as his original mobile manufactured home until a first sale. The original mobile manufactured home removed from the owner's leasehold site shall be assessed as provided in subsection (c) of this section, unless the new owner of such original mobile manufactured home can independently qualify to be assessed as such homes were assessed in the assessment year commencing October 1, 1985, under subparagraph (C) of this subdivision. Notwithstanding the provisions of this section, a mobile manufactured home which is treated by a municipality as personal property in accordance with the provisions of this subsection shall continue to be treated as real property pursuant to [sections 12-412c and] section 21-67a.

Sec. 22. Section 12-129s of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Any municipality may, by vote of its legislative body or, in a municipality where the legislative body is a town meeting, by vote of the board of selectmen, provide a property tax exemption with respect to motor vehicles that are exempt from sales and use taxes under subdivision [(110) or] (115) of section 12-412, as amended by this act.

Sec. 23. Subdivision (19) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(19) Sales of and the storage, use or other consumption of (A) oxygen, blood or blood plasma when sold for medical use in humans or animals; (B) artificial devices individually designed, constructed or altered solely for the use of a particular handicapped person so as to become a brace, support, supplement, correction or substitute for the bodily structure, including the extremities of the individual, and repair or replacement parts and repair services rendered to property described in this subparagraph; (C) artificial limbs, artificial eyes and other equipment worn as a correction or substitute for any functioning portion of the body, custom-made wigs or hairpieces for persons with medically diagnosed total and permanent hair loss as a result of disease or the treatment of disease, artificial hearing aids when designed to be worn on the person of the owner or user, closed circuit television equipment used as a reading aid by persons who are visually impaired and repair or replacement parts and repair services rendered to property described in this subparagraph; (D) canes, crutches, walkers, wheel chairs and inclined stairway chairlifts for the use of invalids and handicapped persons, and repair or replacement parts and repair services to property described in this subparagraph; (E) any equipment used in support of or to supply vital life functions, including oxygen supply equipment used for humans or animals, kidney dialysis machines and any other such device used in necessary support of vital life functions, and apnea monitors, and repair or replacement parts and repair services rendered to property described in this subparagraph; and (F) support hose that is specially designed to aid in the circulation of blood and is purchased by a person who has a medical need for such hose. Repair or replacement parts are exempt whether purchased separately or in conjunction with the item for which they are intended, and whether such parts continue the original function or enhance the functionality of such item. As used in this subdivision, "repair services" means services that are described in subparagraph (Q) or (CC) of subdivision [(37)] (34) of subsection (a) of section 12-407.

Sec. 24. Subdivision (85) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(85) Sales of any landscaping and horticultural services, window cleaning services or maintenance services, as described in subparagraph (I) of subdivision [(37)] (34) of subsection (a) of section 12-407, on or after July 1, 1994, which are rendered to a person determined to be eligible for, and currently receiving, total disability benefits under the Social Security Act, provided such services are rendered at the residence of such person.

Sec. 25. Subdivision (106) of section 12-412 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(106) Sales of services enumerated in subparagraph (J) of subdivision [(37)] (34) of subsection (a) of section 12-407, on or after July 1, 1999, which services are rendered to the central clearinghouse organized and operated under the direction of the Department of Public Utility Control, by the public utilities of this state for receiving and giving the notices required by section 16-349.

Sec. 26. Subdivision (3) of subsection (a) of section 12-458 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(3) Said tax shall not be payable on such fuel as may have been (A) sold to the United States, (B) sold to a municipality of this state, (i) for use by any contractor performing a service for such municipality in accordance with a contract, provided such fuel is used by such contractor exclusively for the purposes of and in accordance with such contract, or (ii) for use exclusively in a school bus, as defined in section 14-275, (C) sold to a municipality of this state, a transit district of this state, or this state, at other than a retail outlet, for governmental purposes and for use in vehicles owned and operated, or leased and operated by such municipality, such transit district or this state, (D) sold to a person licensed as a distributor in this state under section 12-456, (E) transferred from storage within this state to some point without this state, (F) sold to the holder of a permit issued under section 12-458a for sale or use without this state, (G) sold to [the holder of a permit issued under subdivision (63) of section 12-412] a farmer engaged in agricultural production as a trade or business, provided (i) such fuel is not used in motor vehicles registered or required to be registered to operate upon the public highways of this state, unless such fuel is used in motor vehicles registered exclusively for farming purposes, (ii) such fuel is not delivered, upon such sale, to a tank in which such person keeps fuel for personal and farm use, and (iii) a statement, prescribed as to form by the Commissioner of Revenue Services and bearing notice to the effect that false statements made under this section are punishable, that such fuel is used exclusively for farming purposes, is submitted by such person to the distributor, (H) sold exclusively to furnish power for an industrial plant in the actual fabrication of finished products to be sold, or for the fishing industry, (I) sold exclusively for heating purposes, (J) sold exclusively to furnish gas, water, steam or electricity, if delivered to consumers through mains, lines or pipes, (K) sold to the owner or operator of an aircraft, as defined in section 15-34, exclusively for aviation purposes, provided (i) for purposes of this subdivision, "aviation purposes" means for the purpose of powering an aircraft or an aircraft engine, (ii) such fuel is delivered, upon such sale, to a tank in which fuel is kept exclusively for aviation purposes, and (iii) a statement, prescribed as to form by the Commissioner of Revenue Services and bearing notice to the effect that false statements made under this section are punishable, that such fuel is used exclusively for aviation purposes, is submitted by such person to the distributor, (L) sold to a dealer who is licensed under section 12-462 and whose place of business is located upon an established airport within this state, or (M) diesel fuel sold exclusively for use in portable power system generators that are larger than one hundred fifty kilowatts.

Sec. 27. Subdivision (2) of subsection (b) of section 12-587 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(2) Gross earnings derived from the first sale of the following petroleum products within this state shall be exempt from tax: (A) Any petroleum products sold for exportation from this state for sale or use outside this state; (B) the product designated by the American Society for Testing and Materials as "Specification for Heating Oil D396-69", commonly known as number 2 heating oil, to be used exclusively for heating purposes or to be used in a commercial fishing vessel, which vessel qualifies for an exemption pursuant to section 12-412, as amended by this act; (C) kerosene, commonly known as number 1 oil, to be used exclusively for heating purposes, provided delivery is of both number 1 and number 2 oil, and via a truck with a metered delivery ticket to a residential dwelling or to a centrally metered system serving a group of residential dwellings; (D) the product identified as propane gas, to be used exclusively for heating purposes; (E) bunker fuel oil, intermediate fuel, marine diesel oil and marine gas oil to be used in any vessel having a displacement exceeding four thousand dead weight tons; (F) for any first sale occurring prior to July 1, 2008, propane gas to be used as a fuel for a motor vehicle; (G) for any first sale occurring on or after July 1, 2002, grade number 6 fuel oil, as defined in regulations adopted pursuant to section 16a-22c, to be used exclusively by a company which, in accordance with census data contained in the Standard Industrial Classification Manual, United States Office of Management and Budget, 1987 edition, is included in code classifications 2000 to 3999, inclusive, or in Sector 31, 32 or 33 in the North American Industrial Classification System United States Manual, United States Office of Management and Budget, 1997 edition; (H) for any first sale occurring on or after July 1, 2002, number 2 heating oil to be used exclusively in a vessel primarily engaged in interstate commerce, which vessel qualifies for an exemption under section 12-412, as amended by this act; (I) for any first sale occurring on or after July 1, 2000, paraffin or microcrystalline waxes; (J) for any first sale occurring prior to July 1, 2008, petroleum products to be used as a fuel for a fuel cell, [as defined in subdivision (113) of section 12-412] where "fuel cell" means a device that directly or indirectly produces electricity directly from hydrogen or hydrocarbon fuel through a noncombustive electro-chemical process; (K) a commercial heating oil blend containing not less than ten per cent of alternative fuels derived from agricultural produce, food waste, waste vegetable oil or municipal solid waste, including, but not limited to, biodiesel or low sulfur dyed diesel fuel; or (L) for any first sale occurring on or after July 1, 2007, diesel fuel other than diesel fuel to be used in an electric generating facility to generate electricity.

Sec. 28. Subsection (c) of section 21-67a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(c) On or after October 1, 1986, conveyances of title of mobile manufactured homes in mobile manufactured home parks licensed under this chapter or located on single-family lots owned by a person other than the homeowner shall comply with the following requirements: (1) The document conveying the title shall contain (A) a description of the mobile manufactured home, setting forth the name of the manufacturer, the model number, the serial number and all encumbrances on the home, (B) the name and address of the mobile manufactured home park in which the home is located, including lot number, if any, within the park, or for those homes not situated in mobile manufactured home parks, the name and address of the individual owning the lot on which the home is located and the address of the lot, and (C) the amount due and owing, if any, for property taxes to the municipality in which the mobile manufactured home is located; and (2) the document conveying title shall be filed in the town clerk's office of the municipality in which the home is located for recording on the land records. [; and (3) any taxes imposed as provided in subsection (b) of section 12-412c which have become due shall have been paid in full.] No purchaser of a mobile manufactured home shall be entitled to assume the tenancy or rental agreement of the seller in a mobile manufactured home park until such purchaser has complied with [subdivisions (2) and (3)] subdivision (2) of this subsection.

Sec. 29. Section 22a-9 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

The commissioner shall act as the official agent of the state in all matters affecting the purposes of this title and sections 2-20a, 5-238a, subsection (c) of section 7-131a, sections 7-131e, 7-131f, subsection (a) of section 7-131g, sections 7-131i, 7-131l, subsection (a) of section 10-409, subdivisions (51) and (52) of section 12-81, [subdivisions (21) and (22) of section 12-412,] subsections (a) and (b) of section 13a-94, sections 13a-142a, 13b-56, 13b-57, 14-100b, 14-164c, chapter 268, sections 16a-103, 22-91c, 22-91e, subsections (b) and (c) of section 22a-148, section 22a-150, subdivisions (2) and (3) of section 22a-151, sections 22a-153, 22a-154, 22a-155, 22a-156, 22a-158, chapter 446c, sections 22a-295, 22a-300, 22a-308, 22a-416, chapters 446h to 446k, inclusive, chapters 447 and 448, sections 23-35, 23-37a, 23-41, chapter 462, section 25-34, chapter 477, subsection (b) of section 25-128, subsection (a) of section 25-131, chapters 490 and 491 and sections 26-257, 26-297, 26-303 and 47-46a, under any federal laws now or hereafter to be enacted and as the official agent of any municipality, district, region or authority or other recognized legal entity in connection with the grant or advance of any federal or other funds or credits to the state or through the state, to its political subdivisions.

Sec. 30. Subsection (a) of section 26-82 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

(a) No person shall hunt, pursue, wound or kill any deer or sell or offer for sale or have in possession the flesh of any deer captured or killed in this state, or have in possession the flesh of any deer from any other state or country unless it is properly tagged as required by such state or country except as provided by the terms of this chapter or regulations adopted pursuant thereto, and except that any landowner or primary lessee of land owned by such landowner or the husband or wife or any lineal descendant of such landowner or lessee or any designated agent of such landowner or lessee may kill deer with a shotgun, rifle or bow and arrow provided a damage permit has first been obtained from the commissioner and such person has not been convicted for any violation of this section, section 26-85, 26-86a, 26-86b or 26-90 or subsection (b) of section 26-86a-2 of the regulations of Connecticut state agencies within three years preceding the date of application. Upon the receipt of an application, on forms provided by the commissioner and containing such information as said commissioner may require, from any landowner who has or whose primary lessee has an actual or potential gross annual income of twenty-five hundred dollars or more from the commercial cultivated production of grain, forage, fruit, vegetables, flowers, ornamental plants or Christmas trees and who is experiencing an actual or potential loss of income because of severe damage by deer, the commissioner shall issue not more than six damage permits without fee to such landowner or the primary lessee of such landowner, or the wife, husband, lineal descendant or designated agent of such landowner or lessee. The application shall be notarized and signed by all landowners. [or by the landowner or a lessee to whom a farmer tax exemption permit has been issued pursuant to subdivision (63) of section 12-412.] Such damage permit shall be valid through October thirty-first of the year in which it is issued and may specify the hunting implement or shot size or both which shall be used to take such deer. The commissioner may at any time revoke such permit for violation of any provision of this section or for violation of any regulation pursuant thereto or upon the request of the applicant. Notwithstanding the provisions of section 26-85, the commissioner may issue a permit to any landowner or primary lessee of land owned by such landowner or the husband or wife or any lineal descendant of such landowner or lessee and to not more than three designated agents of such landowner or lessee to use a jacklight for the purpose of taking deer when it is shown, to the satisfaction of the commissioner, that such deer are causing damage which cannot be reduced during the daylight hours between sunrise and one-half hour after sunset on the land of such landowner. The commissioner may require notification as specified on such permit prior to its use. Any deer killed in accordance with the provisions of this section shall be the property of the owner of the land upon which the same has been killed, but shall not be sold, bartered, traded or offered for sale, and the person who kills any such deer shall tag and report each deer killed, as provided in section 26-86b. Upon receipt of the report required by section 26-86b, the commissioner shall issue an additional damage permit to the person making such report. Any deer killed otherwise than under the conditions provided for in this chapter or regulations adopted pursuant thereto shall remain the property of the state and may be disposed of by the commissioner at the commissioner's discretion to any state institution or may be sold and the proceeds of such sale shall be remitted to the State Treasurer, who shall apply the same to the General Fund, and no person, except the commissioner, shall retail, sell or offer for sale the whole or any part of any such deer. No person shall be a designated agent of more than one landowner or primary lessee in any calendar year. No person shall make, set or use any trap, snare, salt lick, bait or other device for the purpose of taking, injuring or killing any deer, except that deer may be taken over an attractant in areas designated by the commissioner. For the purposes of this section, an attractant means any natural or artificial substance placed, exposed, deposited, distributed or scattered that is used to attract, entice or lure deer to a specific location including, but not limited to, salt, chemicals or minerals, including their residues or any natural or artificial food, hay, grain, fruit or nuts. The commissioner may authorize any municipality, homeowner association or nonprofit land-holding organization approved by the commissioner under the provisions of this section to take deer at any time, other than Sundays, or place using any method consistent with professional wildlife management principles when a severe nuisance or ecological damage can be demonstrated to the satisfaction of the commissioner. Any such municipality, homeowner association or nonprofit land-holding organization shall submit to the commissioner, for the commissioner's review and approval, a plan that describes the extent and degree of the nuisance or ecological damage and the proposed methods of taking. Prior to the implementation of any such approved plan, the municipality, homeowner association or nonprofit land-holding organization shall provide notice of such plan to any abutting landowners of such place where the plan will be implemented. Such plan shall not authorize the use of a snare. No person shall hunt, pursue or kill deer being pursued by any dog, whether or not such dog is owned or controlled by such person, except that no person shall be guilty of a violation under this section when such a deer is struck by a motor vehicle operated by such person. No person shall use or allow any dog in such person's charge to hunt, pursue or kill deer. No permit shall be issued when in the opinion of the commissioner the public safety may be jeopardized.

Sec. 31. Section 52-568a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):

Any person or any attorney who represents such person, who commences any civil action or complaint, in his own name or the name of others, against the owner or operator of a "pick or cut your own agricultural operation" (1) without probable cause, shall pay such owner or operator double damages, including, in the discretion of the court, costs and attorney's fees, or (2) without probable cause, and with a malicious intent unjustly to vex and trouble such owner or operator, shall pay such owner or operator treble damages including, in the discretion of the court, costs and attorney's fees. As used in this section, "pick or cut your own agricultural operation" means a farm [to whom the Department of Revenue Services has issued a farmer tax exemption permit under subdivision (63) of section 12-412] that allows any person to enter such farm for the purpose of agricultural harvesting, including the cutting of Christmas trees. Nothing in this section shall be construed to affect or abrogate the provisions of section 52-568.

Sec. 32. Subdivisions (21), (22), (31), (40), (41), (43), (44), (50), (52), (53), (58), (63), (64), (65), (66), (71), (72), (74), (82), (83), (88), (89), (90), (91), (95), (102), (104), (108), (109), (110), (111), (113) and (117) of section 12-412 of the general statutes and sections 12-412c, 12-412i, 12-413b and 12-430a of the general statutes are repealed. (Effective July 1, 2010, and applicable to sales occurring on or after July 1, 2010)

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2009, and applicable to income years commencing on or after January 1, 2009

12-211a

Sec. 2

July 1, 2009, and applicable to income years commencing on or after January 1, 2009

12-214(a)(2)

Sec. 3

July 1, 2009, and applicable to income years commencing on or after January 1, 2009

12-214(b)

Sec. 4

July 1, 2009, and applicable to income years commencing on or after January 1, 2009

12-217(a)(1)

Sec. 5

July 1, 2009, and applicable to income years commencing on or after January 1, 2009

12-217zz

Sec. 6

July 1, 2009, and applicable to income years commencing on or after January 1, 2009

12-218(c)

Sec. 7

July 1, 2009, and applicable to income years commencing on or after January 1, 2009

12-219(b)

Sec. 8

January 1, 2010, and applicable to sales occurring on or after January 1, 2010

12-296

Sec. 9

January 1, 2010, and applicable to sales occurring on or after January 1, 2010

12-316

Sec. 10

January 1, 2010

New section

Sec. 11

July 1, 2009, and applicable to estates of decedents who die on or after January 1, 2009

New section

Sec. 12

July 1, 2010, and applicable to sales occurring on and after July 1, 2010

12-407

Sec. 13

July 1, 2009

12-407e

Sec. 14

July 1, 2010, and applicable to sales occurring on and after July 1, 2010

12-412(5)

Sec. 15

July 1, 2010, and applicable to sales occurring on and after July 1, 2010

12-430

Sec. 16

July 1, 2009, and applicable to taxable years commencing on or after January 1, 2009

12-700(a)

Sec. 17

July 1, 2009, and applicable to taxable years commencing on or after January 1, 2009

12-701(20)(A)

Sec. 18

July 1, 2009, and applicable to taxable years commencing on or after January 1, 2009

12-702(a)

Sec. 19

July 1, 2009, and applicable to taxable years commencing on or after January 1, 2009

12-703(a)

Sec. 20

July 1, 2009, and applicable to taxable years commencing on or after January 1, 2009

12-704c(c)

Sec. 21

July 1, 2010

12-63a(d)(2)

Sec. 22

July 1, 2010

12-129s

Sec. 23

July 1, 2010

12-412(19)

Sec. 24

July 1, 2010

12-412(85)

Sec. 25

July 1, 2010

12-412(106)

Sec. 26

July 1, 2010

12-458(a)(3)

Sec. 27

July 1, 2010

12-587(b)(2)

Sec. 28

July 1, 2010

21-67a(c)

Sec. 29

July 1, 2010

22a-9

Sec. 30

July 1, 2010

26-82(a)

Sec. 31

July 1, 2010

52-568a

Sec. 32

July 1, 2010, and applicable to sales occurring on or after July 1, 2010

Repealer section

FIN

Joint Favorable Subst.